Question: Use Excel Simulation and triangular distribution It is equally likely that annual unit sales for Widgetco's widgets will be low or high. If sales are

Use Excel Simulation and triangular distribution
It is equally likely that annual unit sales for Widgetco's widgets will be low or high. If sales are low (60,000), the company can sell the product for $10 per unit. If sales are high (100,000), a competitor will enter, and Widgetco can sell the product for only \$8 per unit. The variable cost per unit has a 25% chance of being $6, a 50% chance of being $7.50, and a 25% chance of being $9. Annual fixed costs are $30,000. Use simulation to estimate Widgetco's expected annual profit. Find an interval that has a 95\% chance of containing Widgetco's annual profit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
