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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.

#### 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

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