Hi-Tech Devices Inc. is planning to market a new solid state industrial device and needs to...

 

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Hi-Tech Devices Inc. is planning to market a new solid state industrial device and needs to simulate the possible financial situation for their first year of sales. They forecast monthly demand to be uniformly distributed between 0 and 4 units (i.e., 0, 1, 2, 3, or 4). Monthly fixed costs will be either $20,000 or $30,000 (with equal likelihood). Monthly variable costs/unit will follow a uniform, continuous distribution, varying between $10,000 and $15,000. Selling price for this device is $30,000. (a) Using the following table and random variables, simulate their first 4 months. Month r Demand Revenue r 1 0.46 0.26 2 0.32 0.49 3 0.94 0.13 4 0.52 0.44 Fixed Costs r 0.50 0.06 0.82 0.91 Total Variable Costs What is the average monthly net income? → What is the probability of losing money in a given month? Monthly Cumulative Net Net Income Income Hi-Tech Devices Inc. is planning to market a new solid state industrial device and needs to simulate the possible financial situation for their first year of sales. They forecast monthly demand to be uniformly distributed between 0 and 4 units (i.e., 0, 1, 2, 3, or 4). Monthly fixed costs will be either $20,000 or $30,000 (with equal likelihood). Monthly variable costs/unit will follow a uniform, continuous distribution, varying between $10,000 and $15,000. Selling price for this device is $30,000. (a) Using the following table and random variables, simulate their first 4 months. Month r Demand Revenue r 1 0.46 0.26 2 0.32 0.49 3 0.94 0.13 4 0.52 0.44 Fixed Costs r 0.50 0.06 0.82 0.91 Total Variable Costs What is the average monthly net income? → What is the probability of losing money in a given month? Monthly Cumulative Net Net Income Income

Answer rating: 100% (QA)

ANSWER a Monthly Net Income Revenue Variable Costs Fixed Costs For month 1 Monthly Net Income 30000 ... View the full answer