Discuss the following;
Develop a worksheet for this problem. Safety First is considering the introduction of a new product. The fixed cost is $30,000 to begin the production. The variable cost is uniformly distributed between $16 and $24 per unit. It will sell for $50 per unit Demand for this product is best described by a normal probability distribution with a mean of 1200 units & a std deviation of 300 units. Use 500 simulation trials to answer these questions:
1. What is the mean profit for the simulation?
2. What is the probability the project will remain in a loss? What is your recommendation concerning the introduction of the project?
3. Selected cell formulas for the attached excel worksheet are as follows:
Attachment:- Simulation Sample.rar