does the average cost per cup of coffee served increase decrease or remain the same 319770

Aug 29, 2021 | Uncategorized

connect Exercises I

EXERCISE 3 1 Fixed and Variable Cost Behavior [L01] Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly tpense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22. %quired: L 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.

Cups of Coffee Served in a Week

2,000 2,100 2,200 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? Explain.

EXERCISE 3 2 Scattergraph Analysis [102] Oki Products. Ltd., has observed the following processing costs at various levels of activity over the last 15 months:

Month Units Produced Processing Cost 1 4,500 $38,000 2 11,000 $52,000 3 12,000 $56,000 4 5,500 $40,000 5 9,000 $47,000 6 10,500 $52,000 7 7,500 $44,000 8 5,000 $41,000 9 11,500 $52,000 10 6,000 $43,000 11 8,500 $48,000 12 10,000 $50,000 13 6,500 $44,000 14 9,500 $48,000 15 8,000 $46,000

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