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Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,300 and the

Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,300 and the variable cost per cup of coffee served is $0.30.

Required:
1.

Fill in the following table with your estimates of total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round the "Average cost per cup of coffee" to 3 decimal places. Omit the "$" sign in your response.)

Cups of Coffee Served in a Week

1,700 1,800

1,900

Fixed cost $ $ $
Variable cost
Total cost $ $ $
Average cost per cup of coffee served $ $ $

2.

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?

Increases
Decreases
Remains the same

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