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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
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 $0.45.
Required:
- 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.
- 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?
Cups of coffee served in a week
900 | 1000 | 1,100 | |
Fixed Cost | |||
Variable Cost | |||
Total Cost | |||
Average cost per cup pf coffee served |
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