1. Business
2. Accounting
3. Management Accounting
4. Cost-Volume-Profit Analysis
5. 219716

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.