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Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4] Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly
Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4]
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,700 and the variable cost per cup of coffee served is $0.69.
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?
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