# Profit Analysis

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.

© BrainMass Inc. brainmass.com October 1, 2020, 10:20 pm ad1c9bdddfhttps://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