Problem 7: The work needs to be completed in Excel. Show all your work.Suppose you have an idea for a new product. The fixed costs are estimated at$500,500. You believe you can sell the item initially for $399, and that variablecosts will run between $231 and $367 with $299 most likely. Suppose you believethat demand will be 1,000 for the worst case, 17,250 for the best case, and mostlikely will be 8,650.A) Determine the profit/loss for the most likely, worst, and best case scenarios.B) Suppose that demand follows a normal distribution with a mean of 8,650 andstandard deviation of 3,700. Also, suppose that variable costs follow auniform distribution with a minimum value of $231 and a maximum valueof $367. Create an Excel model that determines the profit/loss.C) Now create an Excel data table for 1,000 simulations of your data model fordetermining the profit/loss. After you have completed the data table,determine the minimum, maximum, average, and standard deviation of thesimulated values. Also, determine the probability that you will have a loss.D) Given your simulation results, would you pursue this new product idea?Why or why not?

Given information: The fixed costs are estimated at $500,500. Selling price for the item initially =…

Answered: Problem 7: The work needs to be…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Similar questions

A certain company is producing and selling its product X. The variable cost of the product X is 60% of its selling price, and the fixed cost of the company is $50,000 per month. When the company’s target profit for the forthcoming month is $20,000, how much sales volume (in dollars) is required to meet it?
If a company A manufactures t-shirts and sells them to retailers for $9.80 each. It has fixed cost of $2625 related to the production of the t-shirts and production cost per unit is $2.30. Company B also manufactures t-shirts and sell them directly to consumers. The demand for this product is p= 15-x/125, its production cost per unit is $5.00 and its fixed cost is the same as company A. 1. Derive the total revenue function, R(x) for company B. 2. Derive the profit function, for company B. 3. How many t- shirts should company B sell to in order to break even. 4. How many t- shirts must company B sell to maximise its profit.
A firm produces headphones in two qualities, Basic (B) and Premium (P). For the coming year, the estimated quantity produced of B is 60% higher than that of P. The firm makes a markup of 170% on both products. The ratio between the profits per unit between P and B is 2. The cost price for P is $260. If the profit target is $115 362 over the next year, how much of each of the two qualities must be produced and what are the two selling prices? (Round the quantities to the nearest unit and the prices to 2 digits after the decimal point if needed) Quantity of B = Answer units Quantity of P = Answer units Selling price of B = Answer $ Selling price of P = Answer $
Two competing companies produce mobile phones. Company A starts production at 1000 phones per week and plans to increase output by 200 each week. Company B starts production with 500 phones per week and plans to increase output by 20% each week. (a) Calculate the weekly production in weeks 1; 5; 10; 15. Plot the graph of weekly output for each producer on the same diagram (use Excel, if available). Estimate the week in which the output is the same for both firms. (b) Calculate the total production during the first 15 weeks for each firm.
A person wants to earn the profit of $200,000 from his three goods next year. Product A gives him a profit of $100 and has an expected growth of 10% per year. Product B provides a profit of $200 and has an expected growth of 5% per year. Product C provides a profit of $150 and has an expected growth of 8% per year. The person plans to sell two times of product C as of product B. If the person estimated a total growth of 12% per year in his profits, how many of each product should the person sell in a year? the answer is A: 1931, B: 14, C: 28
4. The Metropolitan Company sells its latest product at a unit price of $2. Variable costs are estimated to be 40% of the total revenue, while fixed costs amount to $6,000 per month. How many units should the company sell per month to break even?
A8 Q3

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