A company sells a number of low-cost, high volume cell phone accessory products.For one such product, it is equally likely that the annual unit sales will be low or high.If sales are low (60,000), the company can sell the product for $10 per unit.If sales are high (100,000), a competitor will enter the market and the company will be able to sell the product for only $8 per unit.

The variable cost per unit has a 25% chance of being $6, a 50% change of being $7.50, and a 25% chance of being $9.Annual fixed costs are $30,000.

1. Develop the Simulation model to estimate the company's expected annual profit. Using the @RISK software, run 1000 iterations, 1 simulation.Label the worksheet "Model"
2. Run Browse Results (under EXPLORE in @RISK menu) and save the graph and grid to a new worksheet. Label the worksheet "Browse Results"
3. Run Results Summary (under EXPLORE in @RISK menu) and save the output to a worksheet in the active workbook.
4. Find the 95% confidence interval for the company's annual profit. Clearly label your answer on the "Model" worksheet in a text box.
5. Suppose that annual unit sales, variable cost and unit price are equal to their respective expected values - that is, you assume no uncertainty. Determine the company's annual profit for this scenario.Enter the information used to calculate your answer on the "Model" worksheet and clearly label your answer.
6. Can you conclude from the results in parts 1 and 5 that the expected profit from a simulation is equal to the profit from a scenario where each input assumes it's expected value?Clearly label your answer with your explanation in a text box on the "Model" worksheet