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Espresso Express operates a number of espresso coffee standsin busy suburban malls. The fixed weekly expense of a coffee standis $1,200 and the variable cost
Espresso Express operates a number of espresso coffee standsin busy suburban malls. The fixed weekly expense of a coffee standis $1,200 and the variable cost per cup of coffee served is$0.22.
1. Fill in the following table with your estimates of totalcosts and cost per cup of coffee at the indicated levels ofactivity for a coffee stand. Round off the cost of a cup ofcoffee to the nearest tenth of a cent.
2,000 | 2,100 | 2,200 | |
Fixed cost | ? | ? | ? |
Variable cost | ? | ? | ? |
Total cost | ? | ? | ? |
Cost per cup of coffeeserved: ? ? ?
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 weekincrease? Explain.
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