Real-Life Math -- Solution
You're trying to figure out how much profit you'll make
from the floral arrangements for a florists' conference.
First
you should calculate how many bouquets you'll need to make. There are
100 guests at the conference and about 20 people to a table. You're creating
1 bouquet per table. Divide the total number of people by the number of people
per table to see how many designs you'll need. You'll make 5 bouquets
in total.
Next, try calculating how much each bouquet will cost you
to make. For each type of flower, take the number of flowers and multiply
that by the cost per flower. Then add up them up to come up with the total
amount.
30 roses x $0.67 each = $20.10
15 carnations x
$0.75 each = $11.25
15 daisies x $.80 each = $12.00
4 star gazing
lilies x $3.60 each = $14.40
10 orchids x $1.20 each = $12.00
15 gladiolus
x $.63 each = $9.45
10 baby's breath x $.59 per wreath = $5.90
Add
up the total cost in flowers:
20.10 + 11.25 + 12.00 +
14.40 + 12.00 + 9.45 + 5.90 = $85.10
It will cost you
$85.10 to make each bouquet, or $425.50 to make all 5. Now to make a profit
you must mark up your merchandise. To do this, multiply your cost by 250 percent.
$425.50
x 2.5 = $1,063.75
You also need to add your labor to
the bouquets. It will take you 5 hours to arrange each of the 5 bouquets,
or 25 hours in total. You've got your work cut out for you! Now add on
the amount of time you've already been working -- 2 hours establishing
all the little details and 2 hours to come up with a design.
25
+ 2 + 2 = 29 hours
You charge $15 an hour for labor.
29
x 15 = $435
You will charge the society $435 for the
labor.
Now calculate the total amount you will charge for the bouquets.
$1,063.75
(for 5 bouquets) + $435 (labor) = $1,498.75
Wow! Your
flowers may be beautiful, but they aren't cheap. Now for the fun part
-- figuring out your profit. Take the total cost of the bouquets and subtract
how much it will cost you to make them.
$1,498.75 - $425.50
= $1,073.25
You will make a profit of $1,073.25. Not
bad for a small flower shop!
"Math skills are important for florists
to help them cost designs, do their own accounting and run their business
profitability," says florist Gaynor Hardy. "A solid grounding in accounting
and business math is essential for florists to remain profitable and viable
as a business. Payroll, staff scheduling and sales require math."
While
this sounds like a lot to know, most of these math essentials are taught at
the community college level.
Want a tip about saving money as a florist?
"A major loss of profits for many retailers comes from design work that uses
too much product without taking this into consideration when pricing an arrangement,"
says Hardy.