Pillard Drycleaners has capacity to clean up to 5,500

Pillard Drycleaners has capacity to clean up to 5,500 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, Derrick
Pillard,
erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,500
garments. Would he
overestimate or underestimate his
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.)

  2,500 4,000 5,500
  Garments Garments Garments
Total variable costs   $3,800  
Total fixed costs      
Total operating costs      
       
Variable cost per garment      
Fixed cost per garment   $2.20  
Average cost per garment      

How Our Website Works

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It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

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