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 number of alternatives for the payoff table is

Question

Quizplus · Accepted Answer

There are three options for the number of dozens of roses to purchase: 100, 200, or 400. Therefore, the payoff table will have three rows. For each option, there are two possible outcomes: sell all the roses or have leftover roses to sell at a discount. Therefore, the payoff table will have two columns. The total number of alternatives for the payoff table is 3 x 2 = 6. However, since one of the outcomes for each option is to have leftover roses, we can combine those into one option and have a total of three alternatives. The best choice depends on the market demand for roses on Valentine's Day. If the demand is low, it may be best to purchase 100 dozen roses to minimize the risk of having too many leftover. If the demand is high, it may be best to purchase 400 dozen roses to maximize profit.

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