What is coinstar fixed cost of operating self-serve kiosk

Reference no: EM132115788

Question: Starbucks Unit Brews Up Self-Serve Espresso Bars Coinstar has installed automated, self-serve espresso kiosks in grocery stores. Kiosks cost just under $40,000 each and Coinstar provides maintenance. The self-serve kiosk removes the labour costs of having a barista serve Starbucks' coffee, and store personnel refill the machine.

a. What is Coinstar's total fixed cost of operating one self-serve kiosk? What are its variable costs of providing coffee at a self-serve kiosk?

b. Assume that a coffee machine operated by a barista costs less than $40,000. Explain how the fixed costs, variable costs, and total costs of barista-served and self-served coffee differ.

c. Sketch the marginal cost and average cost curves implied by your answer to part (b).

Reference no: EM132115788

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