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Whitman Drycleaners has capacity to clean up to 6,000 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, Ellen Whitman, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 garments. Would she overestimate or underestimate her 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.) 3,000 Garments 4,500 Garments 3,375 6,000 Garments Total variable costs $ Total fixed costs nt: Total operating costs Variable cost per garment 2.40 Fixed cost per garment 9 Average cost per garment 13. Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the component of the dry cleaner's costs. The V cost per unit decreases as 0 Whitman Drycleaners has capacity to clean up to 6,000 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, Ellen Whitman, erroneously uses the average cost per unit af full capacity to predict total costs at a volume of 3,000 garments. Would she overestimate or underestimate her total costs? By how much? Total fixed costs Total operating costs Variable cost per garment $ Fixed cost per garment 2.40 Average cost per garment Requirement 2. Why does the average cost per garment change? The average cost per garment changes as volume changes, due to the component of the dry cleaner's costs. The cost per unit decreases as volume while the variable cost per unit Requirement 3. Suppose the owner, Ellen Whitman, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 garments. Would she overestimate or underestimate her total costs? By how much? He would her costs by $

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