ignment Results -Internet Explorer Acsignment Resu/ts tpx?todo Edt Yew Favonites

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ignment Results -Internet Explorer Acsignment Resu/ts tpx?todo Edt Yew Favonites Tools Hep 4 Award 10.03 out of 12.50 points Exercise 1-4 Fixed and Variable Cost Behavior [LO1-4] Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22 Required: 1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round the Average cost per cup of coffee served to 3 decimal places.) Cups of Coffee Served in a Week 2,200 s 1.200 s 1,200s 1.200 2,000 ,100 Fixed cost Variable cost Total cost served 440 | 462 1,662 4840. S 1,640 1,684 0820 0.800 0770 cost per cup of coffee 0800 is 0770 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? Decrease Hints eBook &Resources Hint#1 References Expanded table Difficulty 1 Easy

Explanation / Answer

Part -(1) Cups of coffee served in a Week 2000 2100 2200 Fixed Cost 1200 1200 1200 Variable Cost 440 462 484 Total Cost 1640 1662 1684 Average Cost per cup of coffee served 0.820 0.791 0.765 (Average cost per cup of coffee served = Total cost ÷ cups of coffee served in a week) Part -(2) The average cost of a cup of coffee decreases as the number of cups of coffee served increases.

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