Java Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1500 and the variable cost per cup of coffee served is $0.19.
Estimate the total costs and average 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 cent.
Cups of Coffee Served in a Week
3,700 3,800 3,900
Fixed cost $1,500 $1,500 $1,500
Variable cost 703 722 741
Total cost $2,203 $2,222 $2,241
Average cost per
cup of coffee served $ 0.60 $ 0.58 $ 0.57
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