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Chapter 5 - Question 1 Exercise 5-1 Fixed and Variable Cost...

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Question 1: Exercise 5-1 Fixed and Variable Cost Behavior [LO1] 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.

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Requirement 1: Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round cost of a 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 \$ 1100 \$ 1100 \$ 1100 Variable cost 468 494 520 Total cost \$ 1568 \$ 1594 \$
1620 Cost per cup of coffee served \$ 0.871 \$ 0.839 \$ 0.810 Requirement 2: Does the cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Your Answer: Choice Selected Increases Decreases Remains the same Question 2: (1 point)

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Exercise 5-3 High-Low Method [LO3] The Edelweiss Hotel in Vail, Colorado, has accumulated records of the tota number of occupancy-days over the last year. An occupancy-day represent hotel's business is highly seasonal, with peaks occurring during the ski seas Month Occupancy- Days Electrical Costs January 2,604 \$ 6,257 February 2,856 \$ 6,550 March 3,534 \$ 7,986 April 1,440 \$ 4,022 May 540 \$ 2,289 June 1,116 \$ 3,591 July 3,162 \$ 7,264 August 3,608 \$ 8,111 September 1,260 \$ 3,707 October 186 \$ 1,712 November 1,080 \$ 3,321 December 2,046 \$ 5,196 Requirement 1: Using the high-low method, estimate the variable cost of electricity per o electricity per month. (Round the fixed cost to the nearest whole dollar a whole cent. Omit the "\$" sign in your response.) Variable cost \$ per occupancy day Fixed cost \$ per month Requirement 2: Which of the following statement(s) is true? (Select all that apply.) Less systematic factors such as frugality of individual guests may a costs Electrical cost may reflect seasonal factors other than just the varia days
Question 3: (1 point)

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Chapter 5 - Question 1 Exercise 5-1 Fixed and Variable Cost...

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