Does the cost per cup of coffee served increase decrease or

Reference no: EM13481930

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.

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 off the cost of a cup of coffee to the nearest tenth of a cent.

	2,000	2,100	2,200
Fixed cost	?	?	?
Variable cost	?	?	?
Total cost	?	?	?

Cost per cup of coffeeserved: ? ? ?

2. 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: EM13481930

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