Question: Consider the following spreadsheet for an outsourcing decision model. A B $60,000 Outsourcing Decision Model Data Manufactured in-house Fixed cost Unit variable cost Purchased from

Consider the following spreadsheet for an

Consider the following spreadsheet for an outsourcing decision model. A B $60,000 Outsourcing Decision Model Data Manufactured in-house Fixed cost Unit variable cost Purchased from supplier Unit cost Demand volume $45 Unif (110-130) 1,000 We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100. For the unit cost, it follows a uniform distribution between 110 and 130 dollars. The number of trials per simulation is equal to 5,000 at a Sim. Random Seed of 1. Run the simulation and answer the following question(s) using the Random Number Simulator in Excel. What is the value of expected value (the average) of the total in-house manufacturing cost obtained from the simulation results? [ Hint :TC = Fixed Cost + Variable Cost] Select the closest number as this is a simulations and the numbers might be slightly different from one another. $110,000 $125,000 $120,000 $130,000

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