for business Firmis A,B, and C were all selling 1,000 cups of...
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Accounting
for business
Firmis A,B, and C were all selling 1,000 cups of cottee per day at $3.50 per cup, but in the following week they all changed their prices. This gave their managers sorne information about the elasticity of demand in their local market, though they have to bo caretul to recognize that other factors might also havo affected demand. The table below shows the change in sales as a resuit of their new prices; they made no other changes. Complete the table by calculating the rovenue, cost of goods sold (CoGS), and gross margin for each tan. Cottee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 10e per cup - to $0.45 per cup. What will be their new gross margin id they don't pass on the cost increase-and demand remains unchanged? \& What will be theie new gross margin if they raise their price from $4,00 to $4.10 and demand decreases by 2%.4 Taking into consideration only these financial resuits, what should they do
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