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can you please the answer for the blue highlighted revenue, COGS and profit Firms A, B, and C were all selling 1,100 cups of coffee
can you please the answer for the blue highlighted revenue, COGS and profit
Firms A, B, and C were all selling 1,100 cups of coffee per day at $3.50 per cup, and 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 profit for each firm. Revenue COGS @ $0.35/Cup Gross Profit Baseline Firm A Firm B Firm C Price per Cup Cups Sold $3.50 1100 $3.00 $4.00 930 $2.50 1525 Question 2 Coffee prices are going up, and Firm B is trying to decide whether to pass on a cost increase of 10 per cup (to $0.45/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%? Revenue COGS @ $0.45/Cup Gross Profit Firm B (No Change) Firm B (2% drop) Firm B (4% drop) Price per Cup Cups Sold $4.00 1100 $4.10 $4.10 Should they do it if the demand goes down 2%? Should they do it if the demand goes down 4%? Answer Enter (Yes or No only): Answer Enter (Yes or No only)Step by Step Solution
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