The Caf operates an espresso coffee counter in a shopping mall. The fixed rental of...

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Accounting

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The Caf operates an espresso coffee counter in a shopping mall. The fixed rental of the counter spot is $4,000 per month and the variable cost per cup of coffee served is $1.00. Requirements 1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the various levels of sales volume. Cups of coffee served in a month 6,500 6,000 7,000 Total variable costs Total fixed costs Total cost Variable cost per cup Fixed cost per cup Average cost per cup Does the average cost per cup of coffee served change as the number of cups of coffee served in a month changes? 2

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