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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 $1,000 per also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each
Roses
Lilies
Pansies
Orchids
NPV per bunch
$1
$10
$4
$20
Cost per bunch
$21
$29
$33
$76
Max.
Bunches
25
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.)
Roses
NPV per bunch
$1
Cost per bunch
$21
Max.
Bunches
25
Profitability Index (per bunch)
Sagot :
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