Question

Goes-Down-Smooth operates a number of smoothie bars in busy suburban malls. The fixed weekly expense of a smoothie bar is $2,500, and the variable cost per smoothie served is $0.75.
Required:
1. Fill in the following table with your estimates of total costs and cost per smoothie at the indicated levels of activity for a smoothie bar. Round off the cost of a smoothie to the nearest tenth of a cent.
2. Does the cost per smoothie increase, decrease, or remain the same as the number of smoothies served in a week increases? Explain.


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  • CreatedJuly 08, 2015
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