The Western Outfitter Store specializes in denim jeans. The variable cost of the jeans varies according to
Question:
Sales Volume Probability
300 .............. 0.12
400 .............. 0.18
500 .............. 0.20
600 .............. 0.23
700 .............. 0.17
800 .............. 0.10
1.00
Price Probability
$22 ........... .0.07
23 ........... 0.16
24 ............ 0.24
25 ............ 0.25
26 ............. 0.18
27 .............. 0.10
1.00
Variable Cost Probability
$8 ........... 0.17
9 ............. 0.32
10 ........... 0.29
11 ........... 0.14
12 ........... 0.08
1.00
Fixed costs are $9000 per month for the store. Simulate 20 months of store sales and compute the probability the store will at least break even.
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Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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