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Business, 20.02.2020 22:15 melanie1055

Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $23.43 when it produces 1,400 mailboxes. A. What is the total cost of producing 1,400 mailboxes? B. If S20,202 of the total costs are fixed, what is the variable cost of producing each mailbox? C. Write Rollins Mailbox's cost equation. D. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,500 mailboxes? E. Which approach to forecasting costs is appropriate? Why? F. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,500 mailboxes? The plant manager's forecast would be $too high if she/he uses theto predict costs. Theis based on a mixed cost that will change as volume changes. If the manager uses this method, he/she is erroneously assuming that thedoes not change at different volumes. The manager should use theto predict costs since it correctly takes into account the variable and fixed components of producing mailboxes.

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Rollins Mailbox produces decorative mailboxes. The company's average cost per unit is $23.43 when it...
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