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 $0.49.

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?

Cherokee Inc. is a merchandiser that provided the following information:

	Amount
Number of units sold		11,000
Selling price per unit	$	15
Variable selling expense per unit	$	1
Variable administrative expense per unit	$	2
Total fixed selling expense	$	20,000
Total fixed administrative expense	$	14,000
Beginning merchandise inventory	$	11,000
Ending merchandise inventory	$	22,000
Merchandise purchases	$	89,000

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

Harris Company manufactures and sells a single product. A partially completed schedule of the companys total costs and costs per unit over the relevant range of 69,000 to 109,000 units is given below:

Required:

1. Complete the schedule of the companys total costs and costs per unit as given in the relevant tab below.

2. Assume that the company produces and sells 99,000 units during the year at a selling price of $8.37 per unit. Prepare a contribution format income statement for the year.

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. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 1,200 1,300 1,400 Fixed cost Variable cost Total cost Average cost per cup of coffee served Required 1 Required 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? Increase Decrease Remain the same