University Florists Makes Bouquets from a Variety of Materials

question 26

Essay

University Florists makes bouquets from a variety of materials.The Daily Special Bouquet is priced at $20.The florist assembles this bouquet each day from a variety of low cost flowers he buys from his flower supplier.The actual cost of flowers ranges uniformly from $2 to $7,with all intermediate values being equally likely.The florist who studied management science many years ago)knows that the time to assemble a bouquet is normally distributed with a mean time of 5 minutes and standard deviation of 1 minute.This will be the time required for all of the Daily Special Bouquets for that day.The florist values his labor time at $10 per hour.Sales are normally distributed with a mean of 10 bouquets per day with a standard deviation of 1 bouquet.What formulas should go in cells B8:B14 to simulate daily profits for the store?
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { A } & \text { B } & \mathrm{C} & \mathrm{D} & \text { E } & \mathrm{F} \\\hline 1 & \text { Initial Conditions: } & & & & & \\\hline 2 & \text { Sales Price } & & \$ 20 & & & \text { Constant } \\\hline 3 & \text { Number of Bouquets: } & \text { Average } & 10 & \text { Std dev } & 1 & \text { Normal } \\\hline 4 & \text { Cost of Flowers } & \text { Lo } & \$ 2 & \mathrm{Hi} & \$ 7 & \text { Cont. Uniform } \\\hline 5 & \text { Labor Time } & \text { Average } & 5 & \text { Std dev } & 1 & \text { Normal } \\\hline 6 & \text { Labor Cost } & & \$ 10 & & & \text { Constant } \\\hline 7 & & & & & & \\\hline 8 & \text { Cost of Flowers } & \$ 4.41 & & & & \\\hline 9 & \text { Labor Time Min) } & 2.55 & & & & \\\hline 10 & \text { Labor Cost } & \$ 0.43 & & & & \\\hline 11 & \text { Total Cost } & 4.83 & & & & \\\hline 12 & \text { Profit/Bouquet } & \$ 15.17 & & & & \\\hline 13 & \text { \# Bouquets Sold } & 12.20 & & & & \\\hline 14 & \text { Total Profit } & \$ 184.99 & & & & \\\hline\end{array}$

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Definitions:

Product Quality

The characteristics of a product that allow it to meet consumers' expectations and fulfill their needs.

Cash Flow Verification

The process of auditing and validating the cash flows reported by a company to ensure accuracy and prevent fraud.

Capital Budgeting

The process of planning and managing a company’s long-term investments in projects or assets.

Technical Inputs

Elements related to the technological aspects of a project or system, including machinery, design parameters, and software requirements that contribute to its overall functionality and efficiency.