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 testmarketed at several large box stores in the Denver area. After a successful test market, the developers have decided to launch the product nationwide 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
Fixed costs for the production is Normally Distributed with a mean of$and a standard deviation of$
Variable cost is$per unit and the selling price is$
a In Excel, use simulation to calculate the expected net profit. Run trials simulating the demand and the costs. Find the average net profit for the trials.
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