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Question 1: Score 0/4

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| | Your response | Correct response |

Exercise 5-1 Fixed and Variable Cost Behavior [LO1] |

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. |

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Requirement 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 average cost per cup of coffee to 3 decimal places. Omit the "$" sign in your response.) |

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  | Cups of Coffee Served in a Week |

  | 2,000 | 2,100 | 2,200 |

Fixed cost |   | $ |   0.60   (0%) |   |   | $ |   0.571   (0%) |   |   | $ |   0.545   (0%) |   |

Variable cost |   |   |   0.22   (0%) |   |   |   |   0.22   (0%) |   |   |   |   0.22   (0%) |   |

Total cost |   | $ |   0.82   (0%) |   |   | $ |   0.791   (0%) |   |   | $ |   0.765   (0%) |   |

Average cost per cup of coffee served |   | $ |   0.792   (0%) |   |   | $ |   0.792   (0%) |   |   | $ |   0.792   (0%) |   |

| Exercise 5-1 Fixed and Variable Cost Behavior [LO1] |

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. |

|

Requirement 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 average cost per cup of coffee to 3 decimal places. Omit the "$" sign in your response.) |

|

  | Cups of Coffee Served in a Week |

  | 2,000 | 2,100 | 2,200 |

Fixed cost |   | $ | 1,200 |   |   | $ | 1,200 |   |   | $ | 1,200 |   |

Variable cost |   |   | 440 |   |   |   | 462 |   |   |   | 484 |   |

Total cost |   | $ | 1,640 |   |   | $ | 1,662 |   |   | $ | 1,684 |   |...