Poppy's Plantery has been selling an average of 750 plants per week over the past two months of this year. Poppy's sells each plant for $3. Each plant is grown in Poppy's own greenhouse, has a unit variable cost of $0.75, and Poppy's weekly fixed costs are $900. Poppy's Plantery is considered buying plants grown by another supplier which have been offered at a price of $1.00 per plant. If Poppy's were to purchase the plants instead of growing them in-house, half of the fixed costs can be avoided. Should Poppy's Plantery continue to grow its own plants or purchase them directly from a supplier. Show all computations.

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The Answer of Poppy's Plantery has been selling an average of 750 plants per week over the past two months of this year. Poppy's sells each plant for $3. Each plant is grown in Poppy's own greenhouse, has a unit variable cost of $0.75, and Poppy's weekly fixed costs are $900. Poppy's Plantery is considered buying plants grown by another supplier which have been offered at a price of $1.00 per plant. If Poppy's were to purchase the plants instead of growing them in-house, half of the fixed costs can be avoided. Should Poppy's Plantery continue to grow its own plants or purchase them directly from a supplier. Show all computations.

Poppy's Plantery Has Been Selling an Average of 750 Plants