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2.
7/9/23, 3:46 PM
Award: 10.00 points
Exercise 1-4 (Algo) 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
$900 and the variable cost per cup of coffee served is $0.67.
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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
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.)
Cups of Coffee Served in a Week
1,600
1,700
1,800
Fixed cost
Variable cost
$
Total cost
0
$
0
$
0
Average cost per cup of coffee served
Required 1
Required 2
References
Worksheet
Difficulty: 1 Easy
Exercise 1-4 (Algo)
Fixed and Variable
Cost Behavior [LO14]
Learning Objective: 01-04
Understand cost
classifications used to
predict cost behavior:
variable costs, fixed costs,
and mixed costs.
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