The simulation is to be completed in SPSS ONLY.

TudorTech is a new software company that develops and markets productivity software for municipal government applications. In developing their income statement, the following formulas are used:

Gross profit = Net sales - Cost of sales

Net operating profit = Gross profit - Administrative expenses - Selling expenses

Net income before taxes = Net operating profit - Interest expense

Net income = Net income before taxes - taxes

Net sales are uniformly distributed between $600,000 and $1,200,000. Cost of sales is normally distributed with a mean of $540,000 and a standard deviation of $20,000. Selling expenses has a fixed component that is uniform between $75,000 and $110,000. and a variable component of selling expense that is 7% of net sales. Administrative expenses are normal with a mean of $50,000 and a standard deviation of $3,500. Interest expenses are $10,000. The tax rate is 30%.

Develop a simulation model in SPSS and report the descriptive statistics for net income and compute a 95% confidence interval for average net income.