i dont understand #2 at all. please any help would be great.

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. Firm Price Cups Revenue COGS per Cup Sold @ $0.35 per Cup Gross Margin Baseline $3.50 1,000 $3,500 $350 $3,150 A $3.00 1,150 $3,450 $402.5 $3,047.5 B $4.00 900 $3,600 $315 $3,285 $2.50 1,450 $3,625 $507.5 $3,117. 2. Coffee prices are going up, and Firm B is trying to decide whether to pass on to customers a cost increase of 104 per cup-to $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%