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Does the cost per cup of coffee served increase

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Reference no: EM132587054

Green Goblet Express operates a number of espresso coffee stands in a busy suburban mall. The fixed weekly expense of a coffee stands is ?11,000 and the variable cost peer cup of coffee is ?2.60

REQUIRED:

Fill in the following table with your estimates of total cost per coffee at the indicated levels of activity for a coffee stand round off the cost of a cup of coffee to 2 decimal point

                                                   Cups of coffee served in a week

                                      1,800                  1,900                   2,000

Fixed Cost                              ?                        ?                         ?

Variable Cost                           ?                          ?                       ?

Total Cost                                ?                            ?                     ?

Cost per cup of coffee served         ?                       ?                        ?

Question 1: Does the cost per cup of coffee served increase, decrease or remain the same as the number of cups of coffee served in a week increase? Explain.

Reference no: EM132587054

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