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Tutorial   20568

Koffee express operate a number of espresso coffee stands in busy suburban malls. The fixed weekly expenses of coffee stand are $1,100.and variable co...

Question:

Koffee express operate a number of espresso  coffee stands in busy  suburban malls. The fixed  weekly expenses of coffee stand are $1,100.and variable cost per cup of coffee served  is $0.26.

Required:

1.            Fill in the following table with your estimate of total cost and aver cost of per cup of coffee at the indicated level of activities for a coffee stand. Round of the cost of the cup of the coffee to the nearest of the tenth of the cents.

Cups of Coffee served in a week

1,800                     1,900                     2,000

Fixed cost                                                                                            ?                              ?                              ?

Variable Cost                                                                                     ?                              ?                              ?

Total cost                                                                                             ?                              ?                              ?

Average cost per cup of coffee served                                   ?                              ?                              ?

2.            does the average cost  per cup of coffee served  increase,decrease or remain the same as the number of  the cups  of coffee served in a week increase? Explain

ATTACHMENTS
exercise_2-3.xlsx