Application of Profitability Analysis Problem:

You, as a soon$-$to$-$graduate business student, are considering starting your own marketing consulting business. In assessing the market, you have categorized potential consulting projects into five groups, with expected frequencies and time duration shown below:

Project$2$a$.$png

Based on surveying similar firms in comparable cities and market situation, you estimate that the number of projects per week has the following distribution for different consulting fees:

Project$2$b$.$png

Monthly expenses are estimated to be $$2300,$ and you would like to have at least $$75,000$ annual income that compares with your graduating classmates. Determine the potential profitability of your business if you charge the hourly consulting fee at $$50,$ $$60,$ and $$70.$

Your group studies the profitability problem, and build a simulation model to solve this profitability problem using Excel. The results of the profitability analysis include: for each consulting fee, estimated net profit $($loss$),$ possible minimum profit and maximum profit, and probability of making profit from this business. $($Hint: For a particular year, if your business makes less than $$75,000,$ your business makes a loss.$)$ Finally publish your analysis on your team's website.