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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. On spreadsheet calculate the projected change in gross margin based on the estimated changes in cups sold. Show all intermediate calculations.
Size
Price per Cup
Cost per Cup
Cups Sold
Est. Change in Cups Sold with Small @ $2.75
Small
$2.50
$0.20
2,500
-10%
Medium
$3.50
$0.35
1,500
+6%
Large
$4.50
$0.50
800
+3%
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