Respuesta :
In bustling suburban malls, Espresso Express has a number of espresso coffee kiosks. A coffee shop's fixed weekly cost is 1,200, but its variable cost per cup of coffee supplied is 0.22. 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. Average cost per cup of coffee served=0.77
1200 1300 1400
Fixed cost 1300 1300 1300
Variable cost 780 845 910
[1200*.65 ] [.65*1300] [.65*1400]
Total cost 2080 2145 2210
Average cost
per cup 2080/1200= 1.733 2145/1300= 1.65 210/1400= 1.579
2) Decrease as number of cups increases . This is so because fixed cost is deferred or allocated to more number of cups.
1)What is fixed cost?
- Fixed costs are costs that do not change when sales or production volumes increase or decrease. This is because they are not directly associated with manufacturing a product or delivering a service. As a result, fixed costs are considered to be indirect costs.
2)What is variable cost?
- Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. In some accounting statements, the Variable costs of production are called the “Cost of Goods Sold.”#
3)What is average cost?
- Average cost is the cost per unit manufactured in a production run. It represents the average amount of money spent to produce a product. This amount can vary, depending on the number of units produced.
To learn more about Fixed, variable, average costs visit:https://brainly.com/question/14094934
#SPJ4
