Question

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,000 and the variable cost per cup of coffee served is 50.36. 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 1,700 1.800 1.900 Fored cost Variable cost Total cost Average cost per cup of coffee served

Answer 1

Please find below table useful to compute desired results: -

1 Fixed weekly expense 2000 0.36 2 Variable cost 1700 1800 1900 4 Weekly cups of coffee served cups of coffee served in a week |=C5 |=C1 =C2*C3 =C4*C2 =C5*C2 =B8+B9 =C8+C9 =D8+D9 11 average cost per cup of coffee served =B10/C3 =C10/C4 =D10/C5 |=C3 =C1 |=C4 |=C1 8 Fixed costs 9 Variable cost 10 total cost 3.

End results would be as follows: -

Fixed weekly expense 2,000.00 Variable cost 0.36 1,700.00 3 1,800.00 1,900.00 4 Weekly cups of coffee served cups of coffee served in a week 1,700.00 1,800.00 1,900.00 2,000.00 2,000.00 2,000.00 8 Fixed costs Variable cost 612.00 648.00 684.00 2,612.00 2,648.00 2,684.00 10 total cost 1.54 1.47 1.41 11 average cost per cup of coffee served

Requirement 2

Decrease