CFD Data Analysis & Decision Making 2 — Questions and Answers
Question 1: A floral shop's monthly sales data shows roses generating $4,200 and lilies generating $1,800 in revenue. What percentage of total revenue do roses represent?
- 70% (Correct answer)
- 65%
- 75%
- 80%
Correct answer: 70%
Roses ($4,200) divided by total revenue ($6,000) equals 70%.
Question 2: When analyzing floral inventory turnover, a designer notices orchids sit unsold for 18 days on average while carnations sell in 4 days. Which decision is most data-driven?
- Reduce orchid order quantities and increase carnation stock (Correct answer)
- Discontinue orchids entirely
- Increase orchid prices to improve margins
- Order equal quantities of both flowers
Correct answer: Reduce orchid order quantities and increase carnation stock
Reducing slow-moving inventory and increasing fast-moving stock optimizes cash flow and reduces waste.
Question 3: A florist tracks that wedding orders have a 22% profit margin while sympathy arrangements have a 35% margin. If both categories generate equal revenue, which decision maximizes profit?
- Prioritize marketing sympathy arrangements (Correct answer)
- Raise wedding package prices
- Eliminate wedding services
- Reduce sympathy arrangement costs
Correct answer: Prioritize marketing sympathy arrangements
Directing marketing toward the higher-margin sympathy category increases overall profit on the same revenue base.
Question 4: Sales records show Valentine's Day orders tripled compared to the prior month. A designer uses this data primarily to:
- Plan adequate inventory and staffing for next Valentine's Day (Correct answer)
- Raise prices permanently year-round
- Expand the shop's physical space
- Hire full-time employees immediately
Correct answer: Plan adequate inventory and staffing for next Valentine's Day
Historical seasonal spikes inform future procurement and staffing decisions to meet predictable demand.
Question 5: A shop owner compares two suppliers: Supplier A charges $0.80 per stem with a $50 delivery fee, and Supplier B charges $0.95 per stem with free delivery. At what order quantity do costs equalize?
- 333 stems (Correct answer)
- 250 stems
- 500 stems
- 400 stems
Correct answer: 333 stems
Setting 0.80x + 50 = 0.95x gives 0.15x = 50, so x = 333 stems.
Question 6: After reviewing quarterly data, a florist finds that 60% of custom orders come from repeat customers. This metric is best used to:
- Justify investment in a customer loyalty program (Correct answer)
- Reduce advertising to new customers entirely
- Increase prices for repeat customers
- Limit custom order availability
Correct answer: Justify investment in a customer loyalty program
A high repeat-customer rate supports investing in loyalty programs that retain valuable existing customers.
Question 7: A designer's cost-of-goods-sold (COGS) is $8,000 and revenue is $20,000. What is the gross profit margin?
- 60% (Correct answer)
- 40%
- 25%
- 55%
Correct answer: 60%
Gross profit margin = (Revenue − COGS) / Revenue = ($12,000 / $20,000) = 60%.
CFD Data Analysis & Decision Making 2
A floral shop's monthly sales data shows roses generating $4,200 and lilies generating $1,800 in revenue.
What percentage of total revenue do roses represent?