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

question 70

Multiple Choice

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

---

Definitions:

Selling Expenses

Costs that are directly tied to the selling of goods and services, such as advertising, sales staff salaries, and commissions.

Budgeted Receipts

Estimated amounts of money expected to be received during a specified budget period.

Wholesaler

An intermediary in the distribution process that buys products in bulk and resells them to retailers or other businesses.

Industrial Goods

Products used in the production of other goods or services, not intended for direct consumption by consumers.