Question: Management is interested in using simulation to estimate the profit per unit of a potential new product. The selling price for the new product will

Management is interested in using simulation to estimate the profit per unit of a potential new product. The selling price for the new product will be $65 per unit and the probability distributions for the costs (purchase, labor, and transportation) are as follows:

Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost($) Probability
10 0.45 20 0.10 3 0.75
11 0.25 22 0.25 5 0.25
12 0.30 24 0.35
24 0.30

Using the data in the table provided above, calculate/respond to the following questions:

a. Compute the profit per unit for the base case, worst-case, and best-case scenarios?

b. For Procurement Cost setup the random number intervals given the distributions provided above.

c. Simulate the Procurement Cost given the random numbers 0.1467, 0.7913, 0.9013, and 0.6238.

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