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. What is the payoff for buying and selling 400 dozen roses at the full price?

Question

Quizplus · Accepted Answer

The payoff is calculated by subtracting the cost from the revenue. If 400 dozen roses are sold at $20 per dozen, the revenue is $8,000. The cost of purchasing 400 dozen roses at $10 per dozen is $4,000. Therefore, the payoff is $8,000 - $4,000 = $4,000.

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