Kendra's error lies in her misunderstanding of the cost of the bouquets.
When she considers buying 40 bouquets for $120, the cost per bouquet can be calculated as:
\[ \text{Cost per bouquet} = \frac{120}{40} = 3 \]
This means each bouquet costs $3.
On the other hand, if she buys 40 bouquets at $2.50 each, the total cost is:
\[ \text{Total cost} = 40 \times 2.50 = 100 \]
So, in this scenario, each bouquet costs $2.50, and the total cost for 40 bouquets is $100.
In summary, Kendra mistakenly thinks that spending $120 for 40 bouquets is a better deal, while in reality, spending $100 for the same number of bouquets at $2.50 each is the better value. Therefore, the error is in not accurately comparing the total costs based on the per-bouquet price.