Carin’s Corner is a cafe specialising in making Turkish coffee. Being new, it ca
ID: 2409807 • Letter: C
Question
Carin’s Corner is a cafe specialising in making Turkish coffee. Being new, it can also afford to
purchase 60 cups for $2 each. The cups come with matching saucers for $0.40 per saucer. Beans
are purchased in 1kg bags for $17 each, capable of providing enough coffee for 60 persons. It
buys 10 bags of coffee beans. It serves 400 people in its first week selling coffee for $3.80 per
cup. Based on the scenario above, how much does the ‘fixed costs’ amount to at the end of the
first week?
a. $120
b. $140
c. $144
d. $ 314
e. $ 1520
Explanation / Answer
Ans. Fixed Cost: Particulars Amt.($) Cups cost (60 x $2) 120 Saucer cost (60 x $0.40) 24 Total fixed cost 144