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    Profit Analysis

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    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.

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    https://brainmass.com/business/cost-volume-profit-analysis/profit-analysis-219716

    Solution Preview

    Hi,

    Please see attached file for step by step details on your ...

    Solution Summary

    The excel file contains:
    1. Deterministic model
    2. Stochastic mode
    3. Steps to define parameters with screen shots
    4. Simulation output with screen shots

    $2.19

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