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

Question

Ch Espresso 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 $0.47 Required: 1. Fill in the 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? following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of Complete this question by entering your answers in the tabs below Required 1Required 2 Fill in the levels of activity. (Round off the average cost per cup of coffee to the nearest tenth of acentpc ocompanys telal co aver at the Indicated Cups of Coffee Served in a Week 700 800 Fixed cost Variable cost Total cost Average cost per cup of coffee served

Explanation / Answer

cups of coffee served in a week

2. As shown by the above table average cost per cup of coffee served decreases as level of activity or no. of cup of coffee served increases .

Particulars 700 800 900 Fixed cost(Remains same for different level of activity) 1300 1300 1300 Variable cost(0.47 perunit) 329 376 423 Total cost $1629 $1676 $1723 Average cost per cup of coffee served (Total cost/cups of cofee served) $2.32 $2.095 $1.91

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