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A consumer electronics firm produces a line of battery rechargers for cell phones. The following distributions apply:
Unit price: triangular with a minimum of $18.95, most likely value of $24.95, and maximum of $26.95
Unit cost: uniform with a minimum of $12.00 and a maximum of $15.00
Quantity sold: 10,000 – 250*Unit price, plus a random term given by a normal distribution with a mean of 0 and a standard deviation of 10
Fixed costs: normal with a mean of $30,000 and a standard deviation of $5,000
A) What is the expected profit?
B) What is the probability of a loss?
C) What is the maximum loss?
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