Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a
Dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per
Dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen
Roses.The opportunity loss for buying 400 dozen roses and selling 200 dozen roses at the full price is

Question

Quizplus · Accepted Answer

The opportunity loss is calculated by considering the cost of unsold roses. If 400 dozen are purchased and only 200 dozen are sold at full price, 200 dozen remain. These can be sold at $5 per dozen, resulting in a loss of $5 per dozen compared to the full price. The opportunity loss is 200 dozen * $5 = $1,000.

Blossom's Flowers Purchases Roses for Sale for Valentine's Day