Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $500 and the variable cost per cup of coffee served is $0.30. Required: 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 levels of activity. 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 week increases?
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $500 and the variable cost per cup of coffee served is $0.30. Required: 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 levels of activity. 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 week increases?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a
coffee stand is $500 and the variable cost per cup of coffee served is $0.30.
Required:
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 levels of activity.
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 week increases?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated
levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.)
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served
800 Cups of
Coffee
< Required 1
900 Cups of
Coffee
1,000 Cups of
Coffee
Required 2 >
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