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

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. (Round the "Average cost per cup of coffee" to 3 decimal places. Omit the "$" sign in your response.)

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?
	Decreases

Explanation: 1. 

Average cost per cup of coffee served = Total cost ÷ Cups of coffee served in a week

2.

The average cost of a cup of coffee served declines as the number of cups of coffee served increases because the fixed cost is spread over more cups of coffee.