Perrault Drycleaners has capacity to clean up to 5,500 garments per month. Requirements 1. Complete the...

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Perrault Drycleaners has capacity to clean up to 5,500 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Damien Perrault, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,500 garments. Would he overestimate or underestimate his total costs? By how much? Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 2,500 Garments $ 4,000 Garments 2,600 2.20 5,500 Garments www Perrault Drycleaners has capacity to clean up to 5,500 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Damien Perrault, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,500 garments. Would he overestimate or underestimate his total costs? By how much? Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 2,500 Garments $ 4,000 Garments 2,600 2.20 5,500 Garments www

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1 1 Garments 2500 4000 5500 Total Variable cost 1625 2600 3575 Total Fixed cos... View the full answer