5 20 points eBook Print Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to offer a warranty for its customers to receive a free replacement if the battery fails during the first year. Each battery generates a profit of $10.85, and the replacement cost is $6.35. Use Excel's Analysis ToolPak, with a seed of 1, to develop a Monte Carlo simulation for the lifespan of 100 batteries. a. What is the expected total cost of this warranty program? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. The expected total cost of the warranty program for every 100 batteries sold References b. In order to cover the cost of the warranty program, how many additional battery units does the company need to sell? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. Additional batteries the company needs to sell for every 100 batteries currently sold

5 20 points eBook Print Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to offer a warranty for its customers to receive a free replacement if the battery fails during the first year. Each battery generates a profit of $10.85, and the replacement cost is $6.35. Use Excel's Analysis ToolPak, with a seed of 1, to develop a Monte Carlo simulation for the lifespan of 100 batteries. a. What is the expected total cost of this warranty program? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. The expected total cost of the warranty program for every 100 batteries sold References b. In order to cover the cost of the warranty program, how many additional battery units does the company need to sell? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. Additional batteries the company needs to sell for every 100 batteries currently sold

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...

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Q.1.
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