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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 $965 per day to
Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $965 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 Max. Bunches 25 Roses Lilies Pansies Orchids bunch $1 $9 $5 $21 Cost per bunch $15 $30 $29 $75 10 10 5 What combination of flowers should the shop purchase each day? NPV per Cost per Max. Bunches Profitability Index (per bunch) bunch bunch $15 Roses $1 25 (Round to three decimal places.) NPV per Cost per bunch Max. Bunches bunch Profitability Index (per bunch) Lilies $9 $30 10 (Round to three decimal places.) NPV per bunch Cost per bunch $29 Max. Bunches Profitability Index (per bunch) Pansies $5 10 (Round to three decimal places.)
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