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 25 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. Procurement Cost Probability Interval Lower Value Interval Upper Value 10 0.45 11 0.25 12 0.30 c. Simulate the Procurement Cost given the random numbers 0.1467, 0.7913, 0.9013, and 0.6238. Random Number Procurement Cost 0.1467 0.7913 0.9013 0.6238

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