Question: CleanAir, a new lightweight air purifier, has been test - marketed at several large box stores in the Denver area. After a successful test market,

CleanAir, a new lightweight air purifier, has been test-marketed at several large box stores in the Denver area. After a successful test market, the developers have decided to launch the product nation-wide so they are looking for venture capitalists to invest. Here is the sales data that they have provided for you to consider:
Based on the test market, sales predictions for the CleanAir are as follows:
Units Sold
Probability
2500
0.15
5000
0.45
7500
0.40
Fixed costs for the production is Normally Distributed with a mean of$180,000and a standard deviation of$25,000.
Variable cost is$20per unit and the selling price is$79.
a) In Excel, use simulation to calculate the expected net profit. Run 25 trials simulating the demand and the costs. Find the average net profit for the 25 trials.

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