Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weeklyexpense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.Required:1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicatedlevels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.Cups of Coffee Served in a Week2,000 2,100 2,200Fixed cost ........................................................ ? ? ?Variable cost ................................................... ? ? ?Total costs ....................................................... ? ? ?Average cost per cup of coffee served ........... ? ? ?2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the numberof cups of coffee served in a week increases? Explain.
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly
expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.
Required:
1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated
levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.
Cups of Coffee Served in a Week
2,000 2,100 2,200
Fixed cost ........................................................ ? ? ?
Variable cost ................................................... ? ? ?
Total costs ....................................................... ? ? ?
Average cost per cup of coffee served ........... ? ? ?
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? Explain.
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