A company sells a low-cost high-volume product with the following characteristics. If sales are low (30,000 units), the company can sell the product for $20 per unit. If the sales are high (70,000 units), the company can sell the product for $15. In any given year, it is equally likely that sales will be high or low. The variable cost per unit has a 20% chance of being $10, a 60% chance of being $11, and a 20% chance of being $12. Annual fixed costs are $20,000.

(a) Form a profit model for the company that uses random sampling for the uncertain parameters. (4 pts)

(b) Repeat the simulation 1000 times and find the average profit. (2 pts)

(c) Find the 95% confidence interval for the average profit. (1 pt)

(d) How many simulation trials are needed for a margin of error of 1000? (1 pt)

Submit your Excel sheet. It is important to use formulas and proper labeling so I can find easily find your answers to (a)-(d).