accounting for planning and control 1

Homework7-11

For example:PastorePastore

Drycleaners has capacity to clean up to

7 comma 5007,500

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, DarrenDarren

PastorePastore,

erroneously uses the average cost per unit at full capacity to predict total costs at a volume of

4 comma 5004,500

garments. Would

hehe

overestimate or underestimate

hishis

total costs? By howmuch?