Using the profit model developed in Chapter 11, implement a financial simulation model for a new product proposal and determine a distribution of profits using the discrete distributions below for the unit cost, demand, and fixed costs. Price is fixed at $1,000.

Unit costs are unknown and follow the distribution:

Unit Cost Probability

$400 0.20

$600 0.40

$700 0.25

$800 0.15 Demand is also variable and follows the following distribution:

Demand Probability 120 0.25 140 0.50 160 0.25 Fixed costs are estimated to follow the following distribution:

Fixed Costs Probability

$45,000 0.20

$50,000 0.50

$55,000 0.30 Experiment with the model to determine the best production quantity to maximize the average profit.

Would you conclude that this product is a good investment?