Espresso E $1,100 and the variable cost per cup of coffee served is $0.24 operat

Question

Espresso E $1,100 and the variable cost per cup of coffee served is $0.24 operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a levels of activity. week increases? Complete this question by entering your answers in the tabs belovw Required 1 Required 2 ill in the following levels of activity. (Round off the average cost per cu tes of the company's total cost and average cost per cup of coffee at the indicated p of coffee to the nearest tenth of a cent.) of 2,100 2,3 cost Total cost rch

Explanation / Answer

The following is the required table:

2. Decreases.

The average cost per cup of coffee served decreases as the number of cups served increase.

2,100 2,200 2,300 Fixed cost $1,100 $1,100 $1,100 Variable cost ($0.24* coffees served) $504 $528 $552 Total cost (fixed cost + variable cost) $1,604 $1,628 $1,652 Average cost (total cost / coffee served) $0.764 $0.740 $0.718

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