112 100% + Pricing is an important decision in BizCafe. When setting price, you need to consider both the cost of your product and expectations of consumers in the market. You can use break-even analysis to project how many cups you need to sell at a given price to cover costs. But you also want to understand the impact of price on the demand for your product and the revenue generated. In this assignment you will look at some examples of how price can impact demand and how that can affect financial results. Keep in mind that the numbers shown in this assignment are examples only and will differ from your actual results in the simulation. 1. Firms A, B, and C were all selling 1,000 cups of coffee per day at $3.50 per cup, and they wanted to experiment with pricing. 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 Firm Cups COGS Revenue Gross Margin per Cup Sold @ $0.35 per Cup Baseline $3.501,000 $3,500 $350 $3,150 A $3.00 1,150 B $4.00 900 $2.50 1,450 2. Coffee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 10 per cupto $0.45 per cup. If raising the price from $4.00 to $4.10 reduces demand by 2%, should they do it? What if demand goes down by 4%