Question

A wholesale nursery purchases six dozen gladiolus bulbs for $5. The nursery sells the six dozen resulting flowers to a wholesale florist for $10. The wholesale florist delivers the flowers to a retail florist for $15. The flowers are sold by the retail florist for $75 to the bereaved Jones family to use at great-grandfather Jones's wake. What is the value added by the retail florist?

a. $10b. $15c. $25d. $60

Answer 1

d. $60

Step-by-step explanation:

Value added by the retail florist refers to the price by which an item value is increased at every stage of production, exluding its initial cost. In the given problem the wholesale nursery bought 6 dozen bulbs for $5 and the nursery sells the 6 dozen flowers which resulted from them in $10 to wholesale florist. The wholesale florist deliver them to retail florist in $15 and the florist sold those flowers for $75 to the bereaved Jones family therefore, the retail florist buyed at $15 and sold for $75 thus, $75 - $15 = $60