Question: The variable cost for the product is uniformly distributed between E16 and E24 per unit. The product will sell for E50 per unit. Demand for

The variable cost for the product is uniformly distributed between E16 and E24 per unit. The product will sell for E50 per unit. Demand for the product is best described by a normal probability distribution with a mean of 1200 units and a standard deviation of 300 units. Develop a spreadsheet simulation similar to Figure 12.4. Use 500 simulation trials to answer the following questions.

a. What is the mean profit for the simulation?

b. What is the probability the project will result in a loss?

c. What is your recommendation concerning the introduction of the product?

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