Flora's Flower Shop is gearing up for Valentine's Day, which is typically their busiest time of the year. Flora was able to secure 9,000 red roses for the holiday this year. Flora sells red roses for $8 per stem, and bouquets of 12 red roses for $75. The cost per stem for Flora is $3. Typically half of all flowers are sold as individual stems and half as bouquets, however on Valentine's Day the majority of flowers are sold as part of bouquets. Last year Flora made $35,000 over the Valentine's Day holiday, and hopes to make the same profit this year. What is the maximum proportion of flower sales that can come from bouquets in order for Flora to earn a profit of $35,000. 42% O 50% 63% 81%​

Respuesta :

The maximum proportion of flower sales that can come from bouquets in order for Flora to earn a profit of $35,000 is A. 42%.

What is proportion?

The proportion shows the ratios of two or more variables.

While the maximum proportion show the highest ratio or percentage of a variable required to equate an expression.

Data and Calculations:

Number of red roses procured for sale = 9,000

Selling price per stem = $8

Selling price per bouquet (12 stems) = $75

Cost per stem = $3

Last year's Valentine Day profit = $35,000

                                                      Stem       Boutique

Selling price                                    $8             $75

Cost per stem                                   3               36 ($3 x 12)

Contribution margin per unit         $5            $39 ($75 - $36)

Contribution margin per stem       $5            $3.25 ($39/12)

Weighted contribution margin  $22,500  $14,625 ($3.25 x 4,500)

Proportion                                                       42% ($14,625/$35,000 x 100)

Thus, the maximum proportion of flower sales that can come from bouquets in order for Flora to earn a profit of $35,000 is A. 42%.

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