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Firmis A, A, and C were all selling 1,000 cups of coffee per day at 59.50 por cup, but in the following woek they all
Firmis A, A, and C were all selling 1,000 cups of coffee per day at 59.50 por cup, but in the following woek they all changed their prices. This gave their managers some intorimation. about the elasticity of domand in their local markit, thoogh they have to be careful to recognize that other tactors might niso have atiectod demand. The table beiow thows the change in sales as a result of their new prices, they made no other changes. Complete the table by caloulating the reverue, ooat of goods sald (CoGs), and gross mapin for mach firm. Coffee prices are going up, and Fim B is trying to decide whether to pass on to customers a cost increase of toe per cup - to 50.45 per cup What will be their new grons margin it they don't pass on the cost incroase and demand remains unchanged? 5 What wili be their new gross margin if they raise their price from $4,00 to $4.10 and demand decreases by 2%.$ Taking into consideration only these financial results, what should they do
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