Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed .weekly expense of a coffee stand is $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 total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.

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? Explain.

Transcribed Image Text:

Cups of Coffee Served in a Week 2,000 2,200 2,100 Fixed cost ? Variable cost Total cost Average cost per cup of coffee served