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  3. espresso express operates a number of espresso cof

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed...

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Question

Accounting

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $700 and the variable cost per cup of coffee served is $0.51.

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.

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?

1,500 Cups of Coffee 1,600 Cups of Coffee 1,700 Cups of Coffee
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served

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?

Increase
Decrease
Remain the same

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