Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 2 - Managerial Accounting and Cost Concepts - Exercises - Page 54: Exercise 2-4

Answer

1. Total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand are attached below. 2. 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.

Work Step by Step

As given above
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