Question

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,200 and the variable cost per cup of coffee served Is $0.21. Required: 1. Fill in the following table with your estimates of the company's total activity. 2. Does the average cost per cup of coffee served increase, decrease week increases? average cost per cup of coffee at the Indicated levels of in the same as the number of cups of coffee served in a Complete this question by entering your answers in the tabs below. AAAAAAAAAAAA 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.) Cups of Coffee Served in a Week 2,300 2,400 2,500 Fixed cost Variable cost Total cost Average cost per cup of coffee served . 21 of HE

Answer 1

1.

	Cups of Coffees Served in a Week
	2,300	2,400	2,500
Fixed cost	2,200	2,200	2,200
Variable cost	2,300 x 0.21= 483	2,400 x 0.21 = 504	2,500 x 0.21 = 525
Total cost	2,683	2,704	2,725
Average cost per cup of coffee served	2,683/2,300 = $1.167	2,704/2,400 = $1.127	2,725/2,500 =$1.109

2.

Average cost per cup of coffee served decreases as the number of cups of coffee served in a week increase.

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