Question

Espresso Express operates a number of espresso Coree starostlusy Suburban dils me nxeu Weekly expense of a conlee stanu i $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 the company's 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 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 2,000 2,100 2.200 Fored cost Variable cost Total cost Average cost per cup of coffee served Requited 2

Answer 1

Required 1 :
	Cups of Coffee Served in a Week
	2000	2100	2200
Fixed cost	1200	1200	1200
Variable cost [ Cups of coffee served in a week * 0.22 ]	440	462	484
Total cost	1640	1662	1684
Average cost per cup of coffee served [ Total cost / Cups of coffee served in a week ]	0.820	0.791	0.765

Required 2 :

Answer : Decreases