Question: a) What effect does an increase in volume on each of the following: 1) Unit fixed costs 2) Unit variable costs 3) Total fixed costs

a) What effect does an increase in volume on each of the following:

1) Unit fixed costs

2) Unit variable costs

3) Total fixed costs

4) Total variable cost

02 marks

b) Coffee Experts PLC operates number of stands in a busy business street of Karachi. The fixed weekly expense of coffee stand is PKR 1,100 against 2000 cups and the variable cost per cup of coffee is served is PKR 0.26.

Required:

Fill in the following table with your estimates. Round off the cost to the nearest tenth of a paisa.

Cost Items	Cups of Coffee Served in a Week
Cost Items	1,800	1,900	2,000
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served

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