# The Western Outfitters Store specializes in denim jeans. The variable cost of the jeans varies according to

## Question:

Sales volume also varies each month. The probability distributions for volume, price, and variable costs each month are as follows:

Sales Volume . Probability

300 . .12

400 . .18

500 . .20

600 . .23

700 . .17

800 . .10

1.00

Price . Probability

$22 . .07

23 . .16

24 . .24

25 . .25

26 . .18

27 . .10

1.00

Variable Cost . Probability

$ 8 . .17

9 . .32

10 . .29

11 . .14

12 . .08

1.00

Fixed costs are $9,000 per month for the store.

Simulate 20 months of store sales and compute the probability that the store will at least break even and the average profit (or loss).

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## Step by Step Answer:

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