Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,200, and the variable cost per cup of coffee served is $0.18.

Required:

1. Complete 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 the cost of a cup of coffee to the nearest tenth of a cent.

2. Does the 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 3,000 3,200 3д00 Fixed cost ? Variable cost ? Total cost Cost per cup of coffee served