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Goes-Down-Smooth operates a number of smoothie bars in busy suburban malls

Accounting

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Goes-Down-Smooth operates a number of smoothie bars in busy suburban malls. The fixed weekly expense of a smoothie bar is $2,500, and the variable cost per smoothie served is $0.75.

Required: 1. Fill in the following table with your estimates of total costs and cost per smoothie at the indicated levels of activity for a smoothie bar. (Round your "Cost per smoothie served" answers to 2 decimal places.)

Smoothies Served in a Week 2,100 2,800 3,500 Fixed cost Variable cost Total cost Cost per smoothie served

2. Does the cost per smoothie increase, decrease, or remain the same as the number of smoothies served in a week increases?

Increases

Decreases

Remain the same