EXERCISE 5-1 (15 MINUTES)

2,000 2,100 2,200

Fixed cost... $1,200 $1,200 $1,200 Variable cost... 440 462 484 Total cost ... $1,640 $1,662 $1,684 Cost per cup of coffee served *... $0.820 $0.791 $0.765 * Total cost ÷ cups of coffee served in a week