Suck-It, a new compact powerful wireless vacuum, has been test-marketed at a few home stores in the Houston area. Based on their better-than-expected sales, they have decided to launch the product nationally but they are looking for investors. Here is the data that they have provided for you to consider:

Based on the test market, sales predictions for Suck-It are as follows:

Units Sold	Probability
3500	.35
7000	.50
9500	.15

Fixed costs for the production is Normally Distributed with a mean of $275,000 and a standard deviation of $45,000.

Variable cost is $47 per unit and the selling price is $99.

a) Set up this simulation in Excel and calculate the net profit for each trial. Run 40 trials of the simulation. Find the average net profit for the 40 trials.

b) Given the uncertainty in the demand and the fixed costs for this investment and the inherent risk in investing in this company, based on your analysis, is this a good investment, why or why not?

Upload the completed Excel file here.