Question: The variable cost for the product is expected to be between E16 and E24 with a most likely value of E20 per unit. The product

The variable cost for the product is expected to be between E16 and E24 with a most likely value of E20 per unit. The product will sell for E50 per unit. Demand for the product is expected to range from 300 to 2100 units, with 1200 units the most likely demand.

a. Develop the profit model for this product.

b. Provide the base-case, worst-case and best-case analyses.

c. Discuss why simulation would be desirable.

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