Assignment: Monte Carlo Simulation You are thinking about opening a cupcake shop. You plan to sell your delicious cupcakes for $4.25. Fixed costs have 2 components: the lease is $1000; and you expect (with a 90% CI) that utilities are going to be between $400 and $500 per month. Your calculations show that to make a cupcake will cost you $0.75 on average; your 90% confidence interval for the cost is between $0.50 and $1.00. Sales might be between 600 and 1400 (90% CI) cupcake with an average of 1000 cupcakes a month. a) What are your chances of making at least $2000/month profit? b) What are your recommendations based on your analysis? a: b: LB UB Mean Sale Price for Cupcake Cost of Cupcake Sales per month Lease Utilities Fixed cost per month Min Profit required Probability of meeting profit Average Profit Minimum Profit Maximum Profit Scenario Sale Price Sales Revenue Cupcake Cost Variable Cost Fixed Cost Total Cost Profit 1 2 3