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 200 dozen roses and selling 100 dozen roses at the full price is
A)$1,000
B)$500
C)- $500
D)- $2,000

Question

Quizplus · Accepted Answer

If the owner purchases 100 dozen roses, they will sell all of them at the full price for a profit of $1,000 ([$20-$10]x100). If the owner purchases 200 dozen roses, they will sell 100 dozen at the full price for a profit of $1,000, but they will have 100 dozen left over that they can only sell for $5 per dozen, resulting in a loss of $500 ([$5-$10]x100). If the owner purchases 400 dozen roses, they will sell 100 dozen at the full price for a profit of $1,000 and will have 300 dozen left over. Even if they sell all the remaining roses at $5 per dozen, they will still make a profit of $1,000 ([$5-$10]x300).

Therefore, the best choice is to purchase 100 dozen roses.

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