1.

value: 5.78 points

Exercise 1-3 Fixed and Variable Cost Behavior [LO3]

Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,800 and the variable cost per cup of coffee served is $0.47.

Required:
1.	Fill in the following table with your estimates of total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand.(Round your answers to nearest dollar amount. Round the "Average cost per cup of coffee" to 3 decimal places.)

Cups of Coffee Served in a Week

	2,000	2,100	2,200
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 cups of coffee served in a week increases?

	Increases
	Decreases
	Remains the same

578 points Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is S1,800 and the variable cost per cup of coffee served is S0.47 Required Fill in the following table with your estimates of total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand.(Round your answers to nearest dollar amount. Round the "Average cost per cup of coffee" to 3 decimal places.) Cups of Coffee Served in a Week 2,000 2,100 2.200 Fixed cost Variable cost s Total cost Average cost per cup of coffee served S 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the numbe of cups of coffee served in a week increases? Increases O Decreases O Remains the same