BUSN $205-002($Goad$)$: Introduction to the World of Business

Spring $2024-$ Siretha Goad

Firms A$,$ B$,$ and C were all selling $1,000$ cups of coffee per day at $$3\mathrm{.}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.

$\backslash$table$[[$Firm$,$Price per Cup,Cups Sold,Revenue,COGS $ $$0\mathrm{.}35$ per Cup,Gross Margin$],[$Baseline$,$$$3\mathrm{.}50,1,000,$$$3,500,$$$350,$$$3,150$