NOTE: SHOW SOLUTION AND FORMULA IN MS EXCEL

5. Management of Brinley Corporation is interested in using simulation to estimate the profit per unit of a new product. Probability distribution for the purchase cost, the labor cost and the transportation cost are as follows: Purchase Cost 10 11 12 Transportation Cost 3 Probability 0.25 0.45 0.30 Labor Cost Probability 20 0.10 22 0.25 24 0.35 26 0.30 Probability 0.75 0.25 Assume that these are the only costs and that the selling price for the product will be $45 per unit. a. Provide the base-case, worst-case, and best-case calculations for the profit per unit. b. Set up intervals of random numbers that can be used to randomly generate the three cost components and perform 25 trials to determine the profit per unit. c. Management believes the project may not be profitable if the profit per unit is less than $5. Assuming your 25 trials is sufficient to approximate the product's performance, should the company continue with the new product? Why or why not