Question
ints Cafe X is selling coffee in 3 different sizes at the prices and costs shown in the table below. They are considering raising
ints Cafe X is selling coffee in 3 different sizes at the prices and costs shown in the table below. They are considering raising the price of their small to $2.75, and they project that sales of smalls will go down while sales of mediums and larges will go up slightly. Size Price Cost Cups per Cup per Sold Est. Change in Cups Sold with Small @ $2.75 (+$0.25) Cup Small $2.50 $0.20 2,500 -10% Mediu $3.50 $0.35 1,500 +6% m Large $4.50 $0.50 800 +3% Using the blank spreadsheet (attached), calculate the net change in Gross Margin based on: A. The current total Gross Margin [20 points] B. Estimated total Gross Margin given changes [20 points] C. Projected net change in total Gross Margin (Be sure to label columns). [10 points]
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