Perreth Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete the...

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Perreth Drycleaners has capacity to clean up to 7,500 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, Derrick Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 4,500 6,000 7,500 Garments Garments Garments Total variable costs 2$ 5,100 Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment 2$ 2.10 Average cost per garment Perreth Drycleaners has capacity to clean up to 7,500 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, Derrick Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 4,500 6,000 7,500 Garments Garments Garments Total variable costs 2$ 5,100 Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment 2$ 2.10 Average cost per garment

Answer rating: 100% (QA)

Solution 1 Particulars 4500 Garments 6000 Garments 7500 Garments T... View the full answer