Monte Carlo analysis This is an exercise to develop basic Monte Carlo modelling skills.

Required:
1. Replicate the simple CVP model shown above.
2. Assume that the input data are Normally distributed. Prepare a Monte Carlo analysis that prepares and describes a simulated distribution of

a) breakeven quantity and

b) target breakeven quantity.

Transcribed Image Text:

Exercow 6-0 (Compatibility Modrich-x Home men get Famuls at Reviews View A CIS Input data Sales price per unit Variable cost per unit Fixed cost per year Tax rate Annual profit target, after tax Breakeven analysis Breakeven quantity, units 10 Target breakeven analysis 11 Before-tax profit target 12 Target breakeven quantity, units Sheets Sheet Sheets Read $ 555 Mean 7.00 $ Standard Deviation 2.00 $ $ 450,000 5 $4,000 2016 1% S $ 400,000 0 90.000 84/(82-83) $ 500,000 86/(1-85) 190,000 (811-84)/(82-83)