What is the mean profit for the simulation

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The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $37,000. The variable cost for the product is uniformly distributed between $19 and $26 per unit. The product will sell for $57 per unit. Demand for the product is best described by a normal probability distribution with a mean of 1,300 units and a standard deviation of 200 units. Develop an Excel worksheet simulation for this problem. Use 500 simulation trials to answer the following questions:

What is the mean profit for the simulation? Round your answer to the nearest dollar.

Mean profit = $   

What is the probability that the project will result in a loss? Recalculate the numerical value of probability in percent and then round your answer to the nearest whole number.

Probability of Loss =  %

Reference no: EM131122371

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