accounting for planning and control 2

/in /by

PastorePastore
Drycleaners has capacity to clean up to
7 comma 5007,500
garments per month.
Requirements

1.

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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 how much?

 
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