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Koffee Express operates a # of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1200 and the

Koffee Express operates a # of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1200 and the variable cost per cup of coffee served is $0.22.

Cups of Coffee served in a week
0 2000 2100 2200
Fixed Cost 1200 1200 1200
Variable Cost (0.22/cup) 440 462 484
Total Cost 1640 1662 1684
Average cost per cup of coffee served 0.820 0.791 0.765
The one that tricks everyoneuse hints!
Units Produced and Sold
30,000 40,000 50,000
Total Costs:
Variable Costs 180,000
Fixed Costs 300,000
Total Costs 480,000
Cost per unit:
Variable Cost per unit
Fixed Cost per unit
Total Cost per Unit

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