Does the cost per cup of coffee served increase decrease or

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Espresso Express operates a number of espresso coffee standsin busy suburban malls. The fixed weekly expense of a coffee standis $1,200 and the variable cost per cup of coffee served is$0.22.

1. Fill in the following table with your estimates of totalcosts and cost per cup of coffee at the indicated levels ofactivity for a coffee stand. Round off the cost of a cup ofcoffee to the nearest tenth of a cent.


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

 

Cost per cup of coffee served:      ?                        ?                      ?

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: EM13481937

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