CFD Data Analysis & Decision Making 3 — Questions and Answers
Question 1: A floral shop's weekly waste log shows 15% of perishable stock is discarded. To reduce this loss, the most analytical first step is to:
- Identify which specific flowers account for the highest waste volume (Correct answer)
- Immediately reduce all orders by 15%
- Switch to artificial flowers for slow-moving categories
- Offer discounts on all products at week's end
Correct answer: Identify which specific flowers account for the highest waste volume
Pinpointing which items drive waste allows targeted ordering adjustments rather than blanket reductions.
Question 2: A designer uses a break-even analysis and finds fixed monthly costs are $3,000 and the contribution margin per arrangement is $25. How many arrangements must be sold monthly to break even?
- 120 (Correct answer)
- 100
- 150
- 75
Correct answer: 120
Break-even units = Fixed costs / Contribution margin = $3,000 / $25 = 120 arrangements.
Question 3: Sales data reveals that online orders have grown 40% year-over-year while walk-in traffic dropped 10%. The most strategic data-driven response is to:
- Invest in e-commerce capabilities and digital marketing (Correct answer)
- Close the physical storefront immediately
- Reduce online order capacity to balance channels
- Ignore the trend as a temporary anomaly
Correct answer: Invest in e-commerce capabilities and digital marketing
Shifting resources toward the growing online channel aligns investment with demonstrated customer behavior.
Question 4: A florist analyzes that Mother's Day generates 30% of annual revenue in a single week. Which inventory decision is best supported by this data?
- Pre-order significantly more stock 4–6 weeks in advance (Correct answer)
- Order the same as a typical week and reorder daily if needed
- Limit Mother's Day offerings to manage logistics
- Raise prices by 100% to manage demand
Correct answer: Pre-order significantly more stock 4–6 weeks in advance
Advance bulk ordering ensures adequate supply for predictable high-demand periods and often secures better pricing.
Question 5: A florist charges $85 for an arrangement that costs $34 in materials. What is the markup percentage on cost?
- 150% (Correct answer)
- 60%
- 40%
- 200%
Correct answer: 150%
Markup on cost = (Selling price − Cost) / Cost = ($51 / $34) × 100 = 150%.
Question 6: Customer survey data shows 72% of buyers cite 'freshness' as the top purchase factor. A designer uses this to:
- Highlight freshness guarantees prominently in all marketing materials (Correct answer)
- Reduce variety to only the freshest exotic blooms
- Eliminate preserved flower offerings entirely
- Lower prices to attract quality-focused buyers
Correct answer: Highlight freshness guarantees prominently in all marketing materials
Aligning marketing messages with the dominant customer priority directly addresses the primary buying driver.
Question 7: A floral business compares labor costs at 18% of revenue versus an industry benchmark of 25%. What does this data most likely indicate?
- The shop may be understaffed or relying heavily on the owner's uncompensated labor (Correct answer)
- The shop is significantly more efficient than competitors
- Labor costs should be raised to match the benchmark
- The shop's revenue is unusually low
Correct answer: The shop may be understaffed or relying heavily on the owner's uncompensated labor
Below-benchmark labor costs often signal owner-operated hours not reflected in payroll, risking burnout and scalability issues.
CFD Data Analysis & Decision Making 3
A floral shop's weekly waste log shows 15% of perishable stock is discarded.
To reduce this loss, the most analytical first step is to: