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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You own a small business that produces high quality cut flowers. While you have many customers your largest buyer is Blooming Smart Ltd, a large retail outfit with a national chain of outlets that accounts for 50% of your orders on average. Blooming Smart Ltd has now requested that you extend credit terms to them better than what you offer to your other buyers. 1)How could this affect your operating cycle? (300 words)
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3) A newly opened grocery store, to attract customers, started giving 5 loyalty points for each dollar spent in the store. These points can be redeemed in blocks of 5000 and customers are eligible to receive a winter jacket. Since it was newly opened it did not have any past record of how many customers will exercise this offer, but because of the winter season round the corner, it is hoping that 90% of the people will make use of this redemption offer. The store purchases these jackets directly from the manufacturer at $40 per each. In the month of October, the total sales of the store were $480,000. Please calculate the loyalty redemption amount that the store needs to provide for October in its books of accounts.
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Ivanhoe Magazine Ltd. is a small company run by two enterprising university students. They publish an issue of the magazine once a month from September through April. The magazine reports on various university activities and provides information such as how to get the best concert tickets, where to get the best pizza for the best price, where the good study spots are, and how to get library staff to help with research. The magazine is sold either on a prepaid subscription basis for $12 for all eight issues, or for $2 per issue. During September, 1,650 subscriptions were sold. Up to the end of December, a total of 10,725 single copies were sold. The company also pre-sells advertising space in the magazine to local businesses that focus on the student market. During July and August, the company signed up several businesses and collected $16,500 in advertising revenues. The advertisements are to be included in all eight issues of the magazine. The cost of printing and distributing the…
SodaPro sells flavored water products to customers. SodaPro offers a promotion whereby current customers can receive $10 off their next purchase of a pallet of water, which retails for $ 3 0 0. This $1 0 promotion can only be redeemed once for each customer order. A convenience store places an order on 1/1/X 1 for two pallets of water and requests that the promotion be applied to its purchase. SodaPro delivers the product on 1/3/X1. Research and document the appropriate accounting by SodaPro for this transaction.
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