Natashas Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer
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Natasha’s Flowers, a local florist, purchases fresh flowers each day at the local flower market.
The buyer has a budget of $950 per day to spend. Different flowers have different profit margins, and also a maximum amount the shop can sell. Based on past experience, the shop has estimated the following NPV of purchasing each type:
NPV per Bunch Cost per Bunch Max. Bunches Roses $ 1 $25 25 Lilies 10 22 10 Pansies 6 31 10 Orchids 21 84 5 What combination of flowers should the shop purchase each day?
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