Question

Espresso Express operates a number of espresso coffee stands in busy suburban malls

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 the Average cost per cup of coffee served to 3 decimal places.) Answer is complete but not entirely correct. $ Fixed cost Variable cost Total cost Average cost per cup of coffee served Cups of Coffee Served in a Week 800 900 1,000 2,200 $ 2,200 $ 2,200 384 432 480 2,584 $ 2,632 $ 2,680 3.230 $ 2.920 $ 2.680 $ $

Answer 1

	800	900	1000
Fixed cost	$2,200	$2,200	$2,200
Variable cost	384	432	480
Total cost	2,584	2,632	2,680
Average cost per cup of coffee served	$3.230	$2.924	$2.680

If you have any doubts please comment on the answer.