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 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: (Click on the following icon in order to copy its contents into a spreadsheet.) Roses Lilies Pansies Orchids NPV per Bunch $3 8 4 20 What combination of flowers should the shop purchase each day? Roses Cost per Bunch $20 30 30 80 The profitability index for each choice is: (Round to three decimal places.) NPV per bunch Max. Bunches $3 25 Cost per bunch $20 Max. Bunches 25 10 10 5 Profitability Index (per bunch)

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 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: (Click on the following icon in order to copy its contents into a spreadsheet.) Roses Lilies Pansies Orchids NPV per Bunch $3 8 4 20 What combination of flowers should the shop purchase each day? Roses Cost per Bunch $20 30 30 80 The profitability index for each choice is: (Round to three decimal places.) NPV per bunch Max. Bunches $3 25 Cost per bunch $20 Max. Bunches 25 10 10 5 Profitability Index (per bunch)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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 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 $2 $21 25 Lilies $9 $25 10 Pansies $4 $30 10 Orchids $19 $78 5 What combination of flowers should the shop purchase each day? The profitability index for each choice is: (Round to three decimal places.)
A clothing retailer is going to mail out 10,000 catalogues. It costs $2 to mail out each catalogue. When a customer places an order from a catalogue assume a profit of $50 per order is earned. It is assumed that 5% of those who receive a catalogue will place an order however, this number can vary. Use the file below to help you with your tables. Assume that: [total profit = total profit made from the orders – the amount spent on mailing out the catalogues]. a) Use a one-variable data table to determine how the total profit earned from the mailing will vary depending on a response rate between 4% and 10% (with increments of 2%). b) Create a two-variable data table to show how the total profit changes with a varying response rate and number of catalogues mailed. Vary the response rate between 4% and 10% with increments of 2% and vary the number of catalogues mailed from 10,000 to 30,000 at increments of 5000.
A company is trying to decide whether to include a bakery section in its stores. Baking the pies in-house would cost $80 per day and $1 per pie. Pies can be purchased for $4 each from a local bakery, or $3 each from a large regional bakery. The regional bakery requires a minimum purchase of 25 pies per day. Which alternative would you recommend? Show the solution on graph as well.
1) Margin at the Kiosk You rent a kiosk in the mall for $300 a month and use it to sell T-shirts with college logos from colleges and universities all over the world. You sell each T-shirt for $25, and your cost for each shirt is $15. You also pay your salesperson a commission of $0.50 per T-shirt sold in addition to a salary of $400 per month. Construct a contribution margin income statement for two different months: in one month, assume 100 T-shirts are sold, and in the other, assume 200 T-shirts are sold.
You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 46% markup on cost and know most people will not pay more than $25 for it, what is the most you can pay for the pitcher? Note: Round your answer to the nearest cent. Maximum pay I
Suppose Frances earns $825 per week working as a programmer for PC Pros. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Dmitri $450 per week to work the cash register. Dmitri uses $175 to purchase software from PC Pros. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Frances spends $9 to buy a box of aspirin. Frances earns $825 per week working for PC Pros. Dmitri spends $175 to purchase software from PC Pros. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. a. Frances's labor b. The $450 per week Dmitri earns working for Pillmart Pharmacy c. The aspirin Frances receives d. The $175 Dmitri spends to purchase software from PC Pros
Megan's Bridal Shoppe is a bridal shop that offers wedding gowns. Each outfit sells for $1,000 on average, with variable expenses of $400 and fixed costs of $90,000. When 200 gowns are sold, what is the Bridal Shoppe's operational income?
A tree provider to plant nurseries is trying to use customer lifetime value to determine the value of its customers. Two customers are shown below. Use customer lifetime value to determine the importance of each customer. Use a 7 percent discount rate. Avg. Annual Sales Avg. Profit Margin Customer A: Customer B: $26,500 $14,000 Do not round intermediate calculans. Round your answers to the nearest dollar. NPV (Customer A): $ 25% 15% Expected Lifetime 11 years 7 years NPV (Customer B): $ What do you recommend? -Select- is more important.
Mike purchases a bicycle costing $152.90. State taxes are 4% and local sales taxes are 2%. The store charges $20 for assembly. What is the total purchase price (in $)? (Round your answer to the nearest cent.) $ 182.08 Need Help? Read It Watch It Master It
Direction: Read and understand the given problem. Problem: Rhea is engaged in a buy-and-sell business of signature perfumes. She buys 10 boxes of perfumes. Each box costs 12,000.00 and contains a dozen of perfume bottles. She plans to sell one perfume bottle at P1,500. What is her expected profit on the 10 boxes of perfumes? Note: Getting the difference between the amount of money earned from selling 10 boxes containing a dozen of perfume bottles and the cost of those 10 boxes gives the profit." Еxplore! 1. How much profit does Rhea earn? 2. What do you think of Rhea's business? 3. Is it good for a beginner? Why? 4. What do you think should Rhea do in order to flourish in her business?
Apple sales for $2.95 a pound and you make a profit of 20% on the sale price. Grapes sells for $3.99/Lb, 25% profit, Banana $1.05, 25% Profit, Strawberry S 3.5/Lb, 25% profit. You have to pay a daily rent of $75 for the space you rent in a corner of a supermarket, no other expenses required. Create a template that will calculate your daily net profit/Loss for any quantities of sales of the fruit. use yellow as fill color for all the cells where you enter quantities for each fruit. Format the table properly for design and numbers.
You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 40% markup on cost and know most people will not pay more than $20 for it, what is the most you can pay for the pitcher? Round to the nearest cent.

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