Question

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $700 and the variable cost per cup of coffee served is $0.61.

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?

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 2,100 2,200 2,300 Fixed cost Variable cost Total cost Average cost per cup of coffee served

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Espresso Express				Note
Workings for Answer 1	2100	2200	2300	A
Variable cost per cup	0.61	0.61	0.61	B
Total Variable cost	1,281.00	1,342.00	1,403.00	C=A*B
Answer 1	1200	1300	1400	See A
Fixed cost	700.00	700.00	700.00	D
Variable cost	1,281.00	1,342.00	1,403.00	See C
Total cost	1,981.00	2,042.00	2,103.00	E=D+C
Average cost per cup	1.651	1.571	1.502	F=E/A
Answer 2
Decrease.