Perreth Drycleaners has capacity to clean up to 5,000 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, Davis Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 2,000 3,500 Garments Garments $ $ 3.150 1.80 5,000 Garments C

Perreth Drycleaners has capacity to clean up to 5,000 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, Davis Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 2,000 3,500 Garments Garments $ $ 3.150 1.80 5,000 Garments C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The TOS 2/10, n/10 EOM means
Q. 7 a) Discuss the main assumptions of CAPM theory. b) Discuss the theoretical and practical problems of the САРМ.
Thebankbalanceinthecashbookandthatofthebankstatementmaydisgracebecauseofinformationalandtimingdifferences.Explain.
b. Working/Application of ABC analysis?
what is a P&L
C2. d) Explain the criterion to be used to accept projects?
b. Discuss the effect on c and p, when there is an increase in: i. So ii. iii. O K
Answer each of the following independent question: a and b
What is the answer to d e and f?
Num.10