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Brief Exercise 6-1 Identifying Fixed and Variable Cost Behaviour (L01 - CC1,3) Espresso Express operates a number of espresso coffee stands in busy suburban malls.

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Brief Exercise 6-1 Identifying Fixed and Variable Cost Behaviour (L01 - CC1,3) 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.) Cups of Coffee Served in a Week 3,000 3,200 3,400 Fixed cost Variable cost Total cost Cost per cup of coffee served 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? Increase Decrease Remain the same 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.) Cups of Coffee Served in a Week 3,000 3,200 3,400 Fixed cost Variable cost Total cost Cost per cup of coffee served 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? Increase Decrease Remain the same

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