What is the distribution of net profit and the risk of


The Kelly Theater produces plays and musicals for a regional audience. For a typical performance, the theater sells at least 250 tickets and occasionally reaches its capacity of 600 seats. Most often, about 450 tickets are sold. The fixed cost for each performance is normal with a mean of $2,500 and a standard deviation of $250. Tickets cost $50. The theater runs 160 performances per year and incurs an annual fixed cost of $2 million. Develop a simulation model to evaluate the profitability of the theater. What is the distribution of net profit and the risk of losing money over a year?

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Operation Management: What is the distribution of net profit and the risk of
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