Cell Formula Belongs in Cell =VLOOKUP(B18,$B$10:$C$12,2) =VLOOKUP(D23,$F$11:$G$14,2) =K19*($I$16-I19) =VLOOKUP(H27,$B$10:$C$12,2) =AVERAGE(L18:L27) A B C D E F G H I J K L 1 Argosy Incorporated 2 New Product Simulation 3 Argosy is making a new product and is uncertain about two events: the cost of the product, 4 and the demand for the product. Argosy will use simulation to see the affect of varying 5 the selling price. Demand depends on price. Cost will not affect selling price. 6 7 8 Distribution of Cost Distribution of Demand 9 MinProb Cost When price is $20 When price is $25 10 0 8 MinProb Demand MinProb Demand 11 0.35 10 0 5000 0 5000 12 0.75 15 0.2 8000 0.3 8000 13 0.55 10000 0.75 10000 14 0.85 18000 0.9 18000 15 16 For selling price of 20 For selling price of 25 17 Trial RN Unit cost RN Demand Profit Trial RN Unit cost RN Demand Profit 18 1 0.8474 15 0.9559 18000 90000 1 0.7241 10 0.6481 8000 120000 19 2 0.4034 10 0.1144 5000 50000 2 0.8654 15 0.7253 8000 80000 20 3 0.2712 8 0.5127 8000 96000 3 0.0732 8 0.5681 8000 136000 21 4 0.7370 10 0.0627 5000 50000 4 0.5631 10 0.9745 18000 270000 22 5 0.4245 10 0.9173 18000 180000 5 0.6018 10 0.5556 8000 120000 23 6 0.1009 8 0.6462 10000 120000 6 0.1099 8 0.0987 5000 85000 24 7 0.2879 8 0.3423 8000 96000 7 0.6103 10 0.1906 5000 75000 25 8 0.3713 10 0.8377 10000 100000 8 0.2107 8 0.4779 8000 136000 26 9 0.2440 8 0.7518 10000 120000 9 0.0298 8 0.3279 8000 136000 27 10 0.6109 10 0.5009 8000 80000 10 0.2886 8 0.7981 10000 170000 28 Average Profit is 98200 Average