What is the average profit


Problem: In class, we developed a simple spreadsheet model for computing profit in Excel. Use this profit model to implement a financial simulation model for a new product proposal and determine a distribution of profits using the discrete distribution below for the demand, unit cost, and fixed cost. Price is fixed at $1,000

Demand is unknown and follow the distribution: Unit costs are also variable and follow the following distribution: Fixed costs are estimated to follow the distribution: Simulate this model for 50 trials and a production quantity of 140 . What is the average profit?

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