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Pillard dry cleaners has capacity to clean up to 9,000 garments per month ...

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Question

Accounting

Pillard dry cleaners has capacity to clean up to 9,000 garments per month
REQUIREMENTS:
1. Complete the schedule below for three volume shown
2. Why does the average cost per garment change?
3. Suppose the owner, Donald Pillard, erroneously uses the average cost per unit at full capacity to predict total cost at a volume of 6000 garments. Would he over estimate or underestimate his total cost? By how much?
REQUIREMENT 1:
--= blank
g= garment
600075009000
Total variable costs --7125--
Total fixed costs ------
Total operating costs ------
Variable cost per g ------
Fixed cost per g --1.80--
Average cost per g ------

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