Blur Martino Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly
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Question:
Blur Martino Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is P11,000 and the variable cost per cup of coffee served is P2.60.
Required:
- Fill in following the table with your estimates of total cost and cost per cup of coffee at the indicated levels of activity of a coffee stand. Round of the cost of a cup of coffee to the nearest tenth of a cent.
Cups of Coffee Served in a Week
1,800 1,900 2,000
Fixed Cost ? ? ?
Variable Cost ? ? ?
Total cost ? ? ?
Cost per cup of coffee served ? ? ?
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.
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