Alva's Flowers is creating some quick-purchase combos of cut flowers in vases for a booth at a craft fair. They will have just one price for ANY combo. The designers have two choices for vases and three choices for cut flowers. Only one type of flowers is in each vase. The options are shown in the table, along with the cost to Alva's for each option for a vase and flowers.
Vase Option 1
Plastic $0.88
Vase Option 2
Glass $1.45
Flower Option 1
Roses $4.80
Flower Option 2
Carnations $3.10
Flower Option 3
Calla Lillies $5.75
In your work, make a sample space of the possible combos of one vase and one flower option and determine the price for each option. Remember, a combo is ONE vase option and ONE flower option. Assuming that each option is equally likely to occur, compute the expected cost to Alva's for one combo. Round to the nearest $0.01.
What ONE price would Alva's charge for each combo if they want an average of at least $3.50 profit per combo and they want the price rounded to the nearest $0.50?
If they anticipate selling 250 of these combos, what total profit should Alva's make from their sale of these flower/vase combos? Base your calculation on the ONE price you just calculated and your rounded expected cost per combo. Include the dollar sign on your answer.
