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

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,300 and the variable cost per cup of coffee served is $0.18.

What is the Average cost per cup of coffee served if you served 4000 cups.

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Answer #1

Average cost per cup=(Variable cost +Fixed Cost)/no of Units

=(.18*$4000+$1300)/4000

Average cost per cup=.505

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