Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,300 and the variable cost per cup of coffee served is $0.81.

Fill in table for 600, 700, 800 cups of coffee served in a week

Fixed cost

variable cost

total cost

Average cost per cup of coffee served

Required:

1. 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.

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?