Question: Required 2 0 - 2 2 Quality improvement, relevant costs, relevant revenues. Bloom Floral offers a special - priced arrangement for holidays and business increases

Required
20-22 Quality improvement, relevant costs, relevant revenues. Bloom Floral offers a special-priced arrangement for holidays and business increases significantly during these specials. Cathy, the owner of Bloom, guarantees customer satisfaction and charges $50 for these arrangement specials. Bloom receives orders for 1,000 of these arrangement specials for Mother's Day. Typically, 30% of these arrangements have to be reworked by Cathy to assure customer satisfaction. Each rework by Cathy costs approximately $8 per arrangement. Cathy believes that the rework problem could be significantly reduced if she holds a short training before each special-priced arrangement holiday. The expected cost of this training would be $100 per holiday. Cathy expects this training would reduce sales by 20 arrangements but would reduce Cathy's rework to only 5% of the arrangements.be reworked by Cathy to assure customer satisfaction. Each rework by Cathy costs approximately $8 per arrangement. Cathy believes that the rework problem could be significantly reduced if she holds a short training before each special-priced arrangement holiday. The expected cost of this training would be $100 per holiday. Cathy expects this training would reduce sales by 20 arrangements but would reduce Cathy's rework to only 5% of the arrangements.
Should Bloom Floral implement Cathy's idea? Show your calculations.
What nonfinancial and qualitative factors should Bloom Floral consider in deciding whether to implement the new plan? My hint for part 1 net relevant benefit of implementing the nee training profram is $48,508
Required 2 0 - 2 2 Quality improvement, relevant

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!