Application of Profitability Analysis Problem:

Your team is considering starting your own information systems consulting business. In assessing the market, your team has categorized potential consulting projects into five groups, with expected frequencies and time durations shown below:

Project Type	Frequency	Time Duration
Minor	30%	0.5 to 3.0 hours
Small	35%	3 to 10 hours
Medium	20%	10 to 25 hours
Large	10%	25 to 35 hours
Major	5%	35 to 50 hours

Your team estimates that the total number of projects per week, based on surveying similar firms in comparable cities, has the following distribution:

Number of Projects per week	Probability
	Consulting fee $50/hour	$60	$70
0	4%	8%	13%
1	7%	8%	13%
2	10%	11%	17%
3	15%	16%	24%
4	21%	20%	15%
5	15%	16%	8%
6	10%	8%	4%
7	7%	6%	3%
8	5%	4%	2%
9	6%	3%	1%

Monthly expenses are estimated to be $2500. Determine the potential profitability of this business if the hourly consulting rates charged are $50, $60, or $70. Use Excel to build a Monte Carlo simulation model to solve this profitability problem. How can I solve this for profitability? What equation should I use?