A B C D E N P R S T V Y F G H M 1 New Product Simulation 3 RANDOM (UNCERTAIN INPUTS 4 5 Demand -- Normally distributed with mean 3000 units and st dev (Average!MeanlExpected value= 3000) 6 Selling price Revenue, Discrete Uniform between $120 and $160 (whole Dollar (Averagel MeanlExpected value= $140) Variable Costs Per Unit Continuous uniform between $60-$100 per unit (partia (Average!Mean Expected value= $80) 8 Fixed Costs -- Normally distributed with mean $125,000, st dev $18.01 (AverageMean Expected value= $125,000) 7 9 10 MODEL: Profit = Demand* (Selling Price Per Unit - Variable Cost per unit) - Fixed Costs Yins //7eyhet 12 13 14 15 16 17 18 e 1 Model - Use Average (Mean'Expected) Nun Stage 2 Model - Random Numbers Avg AvgSelli Avg Deman ng Price Variable Ayg Fixed Avg Profits Deman Selling d Price Variable Costs Per Fixed Costs Profits STEP 2 Face Wind wakes here and we can previa quan Gee axpected sales a warm carabies ascende a 19 20 STEP 21 22 23 24 25 Stage 2 Model - Multiple Trials Summarize Results Deman d Price Per Unit Costs Per Unit Fixed Costs STEP 4 Minimum Profits TriallRun # Profits 1 STEP 3 LywSanelse Ve star ware XR? reguvis 2v ats evesevwir 7 X 7 usive exe Cabane se desne stad Maximum Profits Arte Was in /XW14126 Average Profits St Dev of Profits bability Profits are Nega (How borstowwwww/a/gy are neare/ 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Distribution of Results Number Percent of Total STEP 5 Class Cum Freg CountFr Rel Calculate te perverweye of winLess than -50% 0 0 palstalim zohranye -50k to 0 0 0 0-50k 0 0 50K-100K 0 0 100K-150K 0 0 150K-200K 0 200K-250k 0 0 250k or more 0 0 STEPE arte conta/burhartstuwing the A/Freq Thierrin clandese "Sabor Data" e "Dass "cum as the Hina/Casey Axis -labe's GraphHistogram of Results da 717 A B C E F G J K M N 0 P R S T U V Graph/Histogram of Results insert bar chartgraph here STEP,7 Answer vs SVV 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 H 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Discuss the Minimum, Maximum and Percent of Profits that were negative. Use these values to make a recommendation as to whether to proceed with this new product development. A B C D E N P R S T V Y F G H M 1 New Product Simulation 3 RANDOM (UNCERTAIN INPUTS 4 5 Demand -- Normally distributed with mean 3000 units and st dev (Average!MeanlExpected value= 3000) 6 Selling price Revenue, Discrete Uniform between $120 and $160 (whole Dollar (Averagel MeanlExpected value= $140) Variable Costs Per Unit Continuous uniform between $60-$100 per unit (partia (Average!Mean Expected value= $80) 8 Fixed Costs -- Normally distributed with mean $125,000, st dev $18.01 (AverageMean Expected value= $125,000) 7 9 10 MODEL: Profit = Demand* (Selling Price Per Unit - Variable Cost per unit) - Fixed Costs Yins //7eyhet 12 13 14 15 16 17 18 e 1 Model - Use Average (Mean'Expected) Nun Stage 2 Model - Random Numbers Avg AvgSelli Avg Deman ng Price Variable Ayg Fixed Avg Profits Deman Selling d Price Variable Costs Per Fixed Costs Profits STEP 2 Face Wind wakes here and we can previa quan Gee axpected sales a warm carabies ascende a 19 20 STEP 21 22 23 24 25 Stage 2 Model - Multiple Trials Summarize Results Deman d Price Per Unit Costs Per Unit Fixed Costs STEP 4 Minimum Profits TriallRun # Profits 1 STEP 3 LywSanelse Ve star ware XR? reguvis 2v ats evesevwir 7 X 7 usive exe Cabane se desne stad Maximum Profits Arte Was in /XW14126 Average Profits St Dev of Profits bability Profits are Nega (How borstowwwww/a/gy are neare/ 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Distribution of Results Number Percent of Total STEP 5 Class Cum Freg CountFr Rel Calculate te perverweye of winLess than -50% 0 0 palstalim zohranye -50k to 0 0 0 0-50k 0 0 50K-100K 0 0 100K-150K 0 0 150K-200K 0 200K-250k 0 0 250k or more 0 0 STEPE arte conta/burhartstuwing the A/Freq Thierrin clandese "Sabor Data" e "Dass "cum as the Hina/Casey Axis -labe's GraphHistogram of Results da 717 A B C E F G J K M N 0 P R S T U V Graph/Histogram of Results insert bar chartgraph here STEP,7 Answer vs SVV 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 H 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Discuss the Minimum, Maximum and Percent of Profits that were negative. Use these values to make a recommendation as to whether to proceed with this new product development