Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,100 and the variable cost per cup of coffee served is $0.26.

Required:
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. 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 increases?Explain.

Transcribed Image Text:

Cups of Coffee Served in a Week 1,900 1,800 2,000 Fixed costTOO Variable cost- Total cost . Cost per cup of coffee served 7 2