QUESTION 1 Firms A, B, and C were all selling 1,000 cups of coffee per day at $3.50 per cup, but in the following week they all changed their prices. This gave their managers some information 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 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 Baseline $3.50 1,000 $3,500 A $3.00 1,120 $ 0 B $4.00 870 $0. 1,410 0 4 COGS @$0.35 per Cup Gross Margin $350 $3,150 0 0 0 CO 9 0 0 0 4. Coffee 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 if they don't pass on the cost increase and demand remains unchanged? $0 What will be their new gross margin if they raise their price from $4.00 to $4.10 and demand decreases by 2%. $.0 C $2.50