Espresso Express operates a number of espresso coffee stands

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,900 and the variable cost per cup of coffee served is $0.78. 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? ook 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 off the average cost per cup of coffee to the nearest tenth of a cent.) Cups of Coffee Served in a Weok 600 700 Fixed cost Variable cost Total cost Average cost per cup of coffee served

Solution

1 600 700 800 Fixed cost 1900 1900 1900 Variable cost 468 546 624 Total cost 2368 2446 2524 Average cost per cup of coffee 3.947 3.494 3.155 2 Decrease as the number of cups of coffee served increases