Exercise 1-4 Fixed and Variable Cost Behavior [LO1-4]

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,300 and the variable cost per cup of coffee served is $0.57.

Required:

1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity.

Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.)

	1600	1700	1800
Fixed Cost	2300	2300	2300
Variable Cost	912	969	1026
Total Cost	3212	3269	3326
Average cost per cup of coffee served	?	?	?