Question

Question 11 14 pts Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of the coffee stand is $1,300 and the variable cost per cup of coffee served is $0.41. 1. What is the variable cost when 2.300 cups are produced per week? What is the fixed cost? 2. What is the variable cost when 2,400 cups are produced per week? What is the fixed cost? 3. What is the variable cost when 2,500 cups are produced per week? What is the fixed cost? 4. What happens to the average cost per cup of coffee served as the number of cups of coffee served in a week increases?

Answer 1

Variable cost = 0.41*2300 = 943

Variable cost = 0.41*2400 = 984

Variable cost = 0.41*2500 = 1025

Decreases

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