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BRIEF EXERCISE 6-1 Identifying Fixed and Variable Cost Behaviour [LO1 - CC1, 3] Big Cup Coffee operates a number of espresso coffee stands in the
BRIEF EXERCISE 6-1 Identifying Fixed and Variable Cost Behaviour [LO1 - CC1, 3] Big Cup Coffee operates a number of espresso coffee stands in the city. The fixed weekly expense of a coffee stand is $2,500, and the variable cost per cup of coffee served is $0.20. 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
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