1 Firms A, B, and C were all selling 1,000 cups of coffee per day at $3.50 per cup, but in the following week they all changed their prices. This gave their managers some information about the elasticity of demand in their local market, though they have to be careful to recognize that other factors might also have affected demand. The table below shows the change in sales as a result of their new prices; they made no other changes. Complete the table by calculating the revenue, cost of goods sold (COGS), and gross margin for each firm. Price per Firm Cup Cups Sold Revenue Baseline $3.50 1,000 $3,500 $350 COGS @ $0.35 per Cup Gross Margin $3,150 $ $ A $3.00 1,190 3570 417 3153 $ $ B $4.00 840 3360 294 3066 $ $2.50 1,490 3725 522 3203 Coffee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 10 per cup-to $0.45 per cup. What will be their new gross margin if they don't pass on the cost increase and demand remains unchanged? $ 2964 What will be their new gross margin if they raise their price from $4.00 to $4.10 and demand decreases by 2%. $ 3066 Taking into consideration only these financial results, what should they do? Raise the price because the loss in volume due to the price increase still generates a higher gross margin than with the lower margin If they wanted to increase the price but try to maintain the same number of cups sold, what might they consider doing (Ctrl- or Cmd-click to select more than one)? Increase advertising on the radio Offer coupons through social media Improve customer service and lower wait times Make additional cups of coffee Stav open an hour later