1. Green Goblet Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is P11,000 and variable cost per cup of coffee served is P2.60.

Required:

a. Fill in the following table with your estimates of total costs and cost per unit of coffee at the indicated levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.

	Cup of Coffee Served in a Week
	1,800	1,900	2,000
Fixed cost Variable cost Total cost Cost per cup of coffee served	?	?	?

b. Does the cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Explain.