Management has asked you to help estimate the average cost per unit to produce a new product so that they can project profits at different selling prices. You will conduct a Monte Carlo simulation for cost behavior using provided probabilistic data for the following cost estimates. Cost per unit for materials, labor, and utilities and their probability distributions are provided in the attached worksheet. In your calculations, round to the nearest cent.

Materials: The probability is .18 that the cost will be $33. The probability is .23 that the cost will be 35. The probability is .32 that the cost will be 35. The probability is .32 that the cost will be 38. The probability is .27 that the cost will be 39. Labor:The probability is .12 that the cost will be 39

Labor:The probability is .12 that the cost will be 22. The probability is .18 that the cost will be 23. The probability is .22 that the cost will be 23. The probability is .22 that the cost will be 24. The probability is .28 that the cost will be 25. The probability is .20 that the cost will be 25. The probability is .20 that the cost will be 28.

Utilities: The probability is .26 that the cost will be 3. The probability is .43 that the cost will be 3. The probability is .43 that the cost will be 4. The probability is .31 that the cost will be $6. Task: A. Complete the attached Simulation Template to determine the following costs (responses should include two decimal places):

1. Average materials cost per unit 2. Average labor cost per unit 3. Average utilities cost per unit 4. Average total cost per unit Note: Run 10 trials using the random numbers that are provided on the Simulation Template for each probability distribution. Use the random numbers in the exact sequence that they appear on the template for each cost. Note: Submit your completed spreadsheet as an attachment to this task.

B. Determine the selling price per unit that should be established for this product using your simulation results and assuming that the company wants to realize an average markup of $20 on each unit sold.

Trial	Random Number	Material Cost		Trial	Random Number	Labor Cost		Trial	Random Number	Utilities Cost
1	28			1	21			1	12
2	14			2	34			2	88
3	74			3	90			3	70
4	91			4	77			4	30
5	38			5	16			5	20
6	79			6	29			6	11
7	10			7	28			7	15
8	40			8	33			8	18
9	11			9	43			9	22
10	20			10	15			10	89
11	98			11	9			11	64
12	51			12	4			12	36