FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly
expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.
Required:
1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated
levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served
Cups of Coffee Served in a Week
2,000
2,200
?
?
?
?
?
?
2,100
?
?
?
?
?
?
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? Explain.
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Transcribed Image Text:Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22. Required: 1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent. Fixed cost Variable cost Total cost Average cost per cup of coffee served Cups of Coffee Served in a Week 2,000 2,200 ? ? ? ? ? ? 2,100 ? ? ? ? ? ? 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? Explain.
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