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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 $940 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 $940 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: Cost per NPV per bunch $3 Max. Bunches 25 Roses Lilies Pansies Orchids $10 $5 $20 bunch $24 $24 $31 $78 10 10 5 What combination of flowers should the shop purchase each day? The profitability index for each choice is: (Round to three decimal places.) NPV per Cost per Max. Bunches Profitability Index (per bunch) bunch bunch Roses $3 $24 25
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