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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.
- 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.
Firm Price per Cup Cups Sold Revenue COGS @ $0.35 per Cup Gross Margin Baseline $3.50 1,000 $3,500 $350 $3,150 A $3.00 1,150 B $4.00 900 C $2.50 1,450
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