Espresso Express operates a number of espresso coffee stands in busy suburban ma

Question

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 $0.71. Required 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 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?

Explanation / Answer

2000 2100 2200 Fixed cost 1200 1200 1200 Variable cost 1420 1491 1562 Total cost 2620 2691 2762 Average cost 1.31 1.28 1.26 The average cost per coffee deceases

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