4. Refer to the Madeira Manufacturing spreadsheet analysis in Problem 3. (Problem 3 is below.) Model the variable cost as a uniform random variable with a minimum of $16 and maximum of $24. Model product demand as 1,000 times the value of a gamma random variable with the shape parameter (alpha) of 4 and a scale parameter (beta) of 3.

a. Perform a simulation analysis to compute the mean profit and the probability that the project will result in a loss. (without using Analytic Solver Platform of Excel)

b. What is your recommendation with regard to the introduction of the product? (without using Analytic Solver Platform of Excel)

(3. The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $30,000. The variable cost for the product is expected to be between $16 and $24, with a most likely value of $20 per unit. The product will sell for $50 per unit. Demand for the product is expected to range from 300 to 2,100 units, with 1,200 units the most likely. (a) Develop a what-if spreadsheet model computing profit for this product in the case-case, worst-case, and best-case scenarios. (b) Discuss why simulation would be appropriate for this situatioin. Would simulation be a preferable approach to analyze this situation? Why or why not?)