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Expreso Deli is a company that has several natural shake kiosks operating in various shopping centers. Each kiosk has a fixed cost of $950 and
Expreso Deli is a company that has several natural shake kiosks operating in various shopping centers. Each kiosk has a fixed cost of $950 and a variable cost of $0.60 per shake.
Complete the following table of estimated costs at the different levels of activity (shakes served per week) presented in each column.
| Total number of shakes served in a week | ||
1,460 | 1,540 | 1,650 | |
Fixed cost | 950 | 950 | 950 |
Variable cost |
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Total cost |
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Average cost per milkshake served |
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2. Explain how the average cost per milkshake served varies as the level of activity increases and why.
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