The Company A expects their production revenue in 2021 become RM250,500 with the overall fixed cost (FX) RM60,000 and variable cost (VC) RM100,000. The standard deviation of revenue, FC and VC are described in Table Expected St. Dev. Revenue 250,500 15500 Fixed Cost 61000 4100 Variable Cost 110000 41000 If the distribution the simulation is assumed NORMAL, by using Monte-carlo method in excel: c. Calculate potential risk of loss for 700 iterations. a. Calculate the expected profit in the first calculation. b. Identify the calculation of 700 iterations for Mean, Standard Deviation, minimal and maximal value.
The Company A expects their production revenue in 2021 become RM250,500 with the overall fixed cost (FX) RM60,000 and variable cost (VC) RM100,000. The standard deviation of revenue, FC and VC are described in Table Expected St. Dev. Revenue 250,500 15500 Fixed Cost 61000 4100 Variable Cost 110000 41000 If the distribution the simulation is assumed NORMAL, by using Monte-carlo method in excel: c. Calculate potential risk of loss for 700 iterations. a. Calculate the expected profit in the first calculation. b. Identify the calculation of 700 iterations for Mean, Standard Deviation, minimal and maximal value.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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