Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

for business can you help with the last question Firms A, B, and C were all selling 1,000 cups of cotfee per day at $3.50

for business
can you help with the last question
image text in transcribed
Firms A, B, and C were all selling 1,000 cups of cotfee per day at $3.50 per cup, but in the following week they all changed their prices. This gave their 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 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). firm. Cottee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 10c per cup-to $0.45 per cup. What will be their new gross margin it they don't pass on the cost increase and demand remains unchanged? $ What will be their new gross margin if they raise their price from $4,00 to $4.10 and demand decreasos by 2%.4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting An International Approach

Authors: Jagdish Kothari, Elisabetta Barone

1st Edition

0273712748, 978-0273712749

More Books

Students also viewed these Accounting questions

Question

2 What are the advantages and disadvantages of job evaluation?

Answered: 1 week ago

Question

1 Name three approaches to job evaluation.

Answered: 1 week ago