Profit Analysis. A consumer electronics firm produces a line of battery rechargers for cell phones. The following distributions apply:
Unit price - triangular with a minimum of $18.95, most likely value of $24.95, and maximum of $26.95
Unit cost - uniform with a minimum of $12.00 and a maximum of $15.00
Quantity sold - 10,000 - 250*Unit price, plus a random term given by a normal distribution with a mean of 0 and a standard deviation of 10
Fixed costs - normal with a mean of $30,000 and a standard deviation of $5,000
a. What is the expected profit?
b. what is the probability of a loss?
c. What is the maximum loss?
*** Answer the questions and provide an Excel file with that captures the Forecast windows that justify your answers.
Please see attached file for step by step details on your ...
The excel file contains:
1. Deterministic model
2. Stochastic mode
3. Steps to define parameters with screen shots
4. Simulation output with screen shots