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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

Total cost

Average cost per milkshake served

2. Explain how the average cost per milkshake served varies as the level of activity increases and why.

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