the cost per bunch from the NPV per bunch.
1. Roses: Profit Margin = NPV - Cost = $3 - $20 = -$17
2. Lilies: Profit Margin = NPV - Cost = $8 - $30 = -$22
3. Pansies: Profit Margin = NPV - Cost = $4 - $30 = -$26
4. Orchids: Profit Margin = NPV - Cost = $20 - $80 = -$60
Since the profit margins for all types of flowers are negative, it is not advisable for Natasha's Flowers to purchase any flowers based on the estimated NPV provided in the table. It would result in a loss for the flower shop. Therefore, the shop should consider reevaluating the flower options or the budget allocation to ensure profitability

Question

12-07-2024
Business

Answered

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the cost per bunch from the NPV per bunch.
1. Roses: Profit Margin = NPV - Cost = $3 - $20 = -$17
2. Lilies: Profit Margin = NPV - Cost = $8 - $30 = -$22
3. Pansies: Profit Margin = NPV - Cost = $4 - $30 = -$26
4. Orchids: Profit Margin = NPV - Cost = $20 - $80 = -$60
Since the profit margins for all types of flowers are negative, it is not advisable for Natasha's Flowers to purchase any flowers based on the estimated NPV provided in the table. It would result in a loss for the flower shop. Therefore, the shop should consider reevaluating the flower options or the budget allocation to ensure profitability

Sagot :

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