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Acme Mailbox produces decorative mailboxes. The company's average cost per unit is $21.43 when it...

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Accounting

Acme Mailbox produces decorative mailboxes. The company's average cost per unit is $21.43 when it produces 1,100 mailboxes.
Read the equirements.
Requirement 1. What is the total cost of producing 1,100 mailboxes?
The total cost of producing 1,100 mailboxes is
Requirement 2. If $10,373 of the total costs are fixed, what is the variable cost of producing each mailbox?
The variable cost per unit is
Requirements
What is the total cost of producing 1,100 mailboxes?
If $10,373 of the total costs are fixed, what is the variable cost of producing each mailbox?
Write Acme Mailbox's cost equation.
If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,300 mailboxes?
If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,300 mailboxes?
What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?
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