Buyer has a budget of $935 each day. Different flowers have different profit mar

Question

Buyer has a budget of $935 each day. Different flowers have different profit margins and a restriction on how many they can sell

Roses: Npv=1, cost=16, max bunch=25

Pansies: NPV=6, Cost=30, Max Bunch=10

Orchids:NPV=21, Cost=79, Max Bunch=5

Lilies:NPV=10, Cost=24, Max Bunch=10

For how much dollar should you purchase lilies each day?

For how much dollar should you purchase orchids each day?

For how much dollar should you purchase pansies each day?

For how much dollar should you purchase roses each day?

Explanation / Answer

benefit-cost ratio (BCR) for roses= 1/16= .06 benefit-cost ratio (BCR) for pansies= 6/30= .2 benefit-cost ratio (BCR) for orchids= 21/79 = .26 benefit-cost ratio (BCR) for lillies= 10/24 = .42 no of lillies= 10 no of orchids= 5 no of pansies= 10 no of roses = 0

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