Question

Fill in the following table with your estimates of total costs and cost per cup of coffee atthe indicated levels of activity for a coffee stand Cups of Coffee Served in a Week 1800 1900 2000 Fixed cost 1700 1700 1700 variable cost 1296 1368 1440 Total Cost 2996 3068 3140 Average cost cup of coffee served 1.66 1.61 1.57Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,700 and the variable cost per cup of coffee served is $0.72. Required 1. Fill in the following table with your estimates of the companys 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 1Required 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? Increase ODecrease ORemain the same Required 1 Required 2

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Requirement 2 - Decrease

The average cost of a cup of coffee served declines as the number of cups of coffee served increases because the fixed cost is spread over more cups of coffee

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