Question: Develop an Excel worksheet simulation for the following problem. The management of Paragon Household Products is considering the introduction of a new product. The fixed
Develop an Excel worksheet simulation for the following problem. The management of Paragon Household Products is considering the introduction of a new product. The fixed cost to begin the production of the product is $25,388. The variable cost for the product is uniformly distributed between $15 and $20 per unit. The product will sell for $42 per unit. Demand for the product is best described by a normal probability distribution with a mean of 1200 units and a standard deviation of 300 units. Develop a spreadsheet simulation that uses 500 simulation trials to answer the following questions: a. What is the mean profit for the simulation? b. What is the probability that the project will result in a loss? C. What is your recommendation concerning the introduction of the product? ***NOTE: the exact numbers will change every time you change the spreadsheet. The assignment will be graded on the integrity of the model.
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