1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elodia [21]
3 years ago
15

Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is

$1,100 and the variable cost per cup of coffee served is $0.26.
Required:

1. Fill in the following table with your estimates of total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand.

Cups of Coffee Served in a Week 1,800 1,900 2,000
Fixed Cost
Variable Cost
Total Cost Average cost per cup of coffee served
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
Business
1 answer:
sergey [27]3 years ago
7 0

Answer:

1.

* Number of Cups of coffee served in a week is 1,800:

Fixed cost: $1,100

Variable cost: $0.26

Total cost average cost per cup: $0.87 ( which is calculated as Total Fixed cost/Total of cups served + Variable cost per unit = 1,100/1,800 + 0.26)

* Number of Cups of coffee served in a week is 1,900:

Fixed cost: $1,100

Variable cost: $0.26

Total cost average cost per cup: $0.84 ( which is calculated as Total Fixed cost/Total of cups served + Variable cost per unit = 1,100/1,900 + 0.26)

* Number of Cups of coffee served in a week is 2,000:

Fixed cost: $1,100

Variable cost: $0.26

Total cost average cost per cup: $0.81 ( which is calculated as Total Fixed cost/Total of cups served + Variable cost per unit = 1,100/2,000 + 0.26)

2.

The average cost per cup of coffee served decreases as the number of cups of coffee served in a week increases.

This is because average cost per cup of coffee served is equal to the sum of allocated fixed cost to one cup of coffee + variable cost of one cup of coffee. Although the variable cost of one cup of coffee remains the same given changes in the number of cups served, the allocated fixed cost to one cup of coffee decreases as the cups served increases as Total fixed cost remained the same, yet it will be allocated to more cup served, so the amount allocated to one cup served will decreases.

A formula will make it easy to understand:

Average cost per cup of coffee served = Variable Cost + Total Fixed cost/Total of cups served. Variable cost and total fixed cost remains the same with the variation of number of cup served; thus as number of cups served increases, Average cost per cup of coffee served decreases.

Explanation:

You might be interested in
Which important biochemical process receives a supply of nad ions from the fermentation process during anaerobic respiration?
Alexxandr [17]

Answer:

Glycolysis

Explanation:

Glycolysis is the process that receives a supply of NAD+ ions from the fermentation. When cells need energy but there is no oxygen for aerobic respiration than anaerobic respiration takes place.

5 0
2 years ago
The most preferred technique for determining how much life insurance coverage is needed for an individual is:
beks73 [17]

<span>In dermining how much life insurance coverage is needed for an individual , you have to consider first, to determine annual income needs of your family if you were to die today. Because you have to consider any lifestyle changes that might happen after te death and include current expenses such as mortgage, rent, groceries, clothing, utility bills, entainment, travel, transportation and child care. Next, you have to subtract available income from annual income needs. Then, determine the principal needed to generate income to be replaced (annual income to be replaced) devided by (rate of return) = amount of principal needed. Next, Add one-time expenses of your survivors will have to pay including funeral expenses. Lastly you have to subtract one-time gains such as the total amount of money or profit that is made from other life insurance policies, assets from selling a business or other payouts.</span>

5 0
3 years ago
When researchers calculate a basketball star's net worth they are measuring the star's _____.
polet [3.4K]
The answer is letter b, income and the wealth. The net worth is a way of having to measure the over all asset of the individual in which his or her income as well as his or her wealth that he or she has or acquires. The answer is letter b.
6 0
3 years ago
The United States will import 3 million CDminusRom drives if​ ________ tax per CDminusRom drive is levied on imported CDminusRom
Brums [2.3K]

Answer:

A. no

Explanation:

If there is no tax rate per CDminusRom, to import it will cost less. It is easier when there is no tax rate attached. Therefore, The United States will import 3 million CDminusRom drives if​ ____NO____ tax per CDminusRom drive is levied on imported CDminusRom drives. Hence, the answer is A

8 0
2 years ago
NEED ANSWER ASAP
insens350 [35]

Answer:

a. Mr Smith's orange business because it's a small fraction of the economy

3 0
2 years ago
Other questions:
  • The statement of owner’s equity contains the
    11·2 answers
  • Malcolm faced resistance from the team most likely because he did NOT utilize which of the following influence tactics?
    9·1 answer
  • Benjamin is an engineer with the Lego Group in Bellund, Denmark, manufacturers of Lego toy construction blocks. He is responsibl
    11·1 answer
  • Bramble sells softball equipment. On November 14, they shipped $3120 worth of softball uniforms to Palos Middle School, terms 2/
    9·1 answer
  • When you introduce your product to a focus group or a small geographical location, which activity does it signify?
    6·1 answer
  • A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share. The issue price was
    9·1 answer
  • Which of the following are reasons managed floating exchange rates were adopted by the industrialized nations in 1973?
    14·1 answer
  • From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify tho
    6·1 answer
  • A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:
    11·1 answer
  • Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!