CH 5 Quiz - Question 1: Score 0.45/1 Question 2: Score...

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Unformatted text preview: Question 1: Score 0.45/1 Question 2: Score 0.5/1 Total grade: 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 1.0×1/12 + 0.0×1/12 + 1.0×1/12 = 8% + 8% + 8% + 8% + 8% + 8% + 8% + 8% + 8% + 8% + 0% + 8% Your response Correct response 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 $0.26. Requirement 1: Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round cost of a cup of coffee to 3 decimal places. Omit the "$" sign in your response.) Cups of Coffee Served in a Week 1,800 1,900 2,000 Fixed cost $ 1,100 (8%) $ 1100 (8%) $ 1,100 (8%) Variable cost 468 (8%) 494 (8%) 520 (8%) Total cost $ 1,568 (8%) $ 1,594 (8%) $ 1,620 (8%) Cost per cup of coffee served $ .871 (8%) $ .838 (0%) $ .81 (8%) 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 $0.26. Requirement 1: Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round cost of a cup of coffee to 3 decimal places. Omit the "$" sign in your response.) Cups of Coffee Served in a Week 1,800 1,900 2,000 Fixed cost $ 1,100 $ 1100 $ 1,100 Variable cost 468 494 520 Total cost $ 1,568 $ 1,594 $ 1,620 Cost per cup of coffee served $ .871 $ 0.839 $ .81 Feedback: Cost per cup of coffee served = Total cost ÷ cups of coffee served in a week 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 Correct Increases Decreases Remains the same Feedback: The average cost of a cup of coffee declines as the number of cups of coffee served increases because the fixed cost is spread over more cups of coffee. Your response Correct response Exercise 5-3 High-Low Method [LO3] The Edelweiss Hotel in Vail, Colorado, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. 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 Exercise 5-3 High-Low Method [LO3] The Edelweiss Hotel in Vail, Colorado, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one the number of occupancy-days over the last year....
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