Assume a majok fruit and vegetable company is proposing a guaranteed Minimum Price (GMP) to buy all of Maria's organic bananas, regardless of the amount she grows. The company has set its GMP at $260 per tonne. Modify the existing model (posted below), then use the revised model to answer the questions below based upon the implementation of a GMP. All answers and relevant graphs/@Risk functions used should be placed in the final model worksheet (also, make sure to save results from your simulation). Note that, for the revised model, you will want to have a new/separate output for organic bananas with the GMP so you can compare the results to organic bananas without the GMP (i.e. you will want to track the profit both with and without the GMP in your model). 2a) At a GMP at $260 per tonne, what would be the company's expected incremental cost per hectare (i.e., incremental relative to paying the market price for Maria's organic bananas)? b) Then, suppose that the company's objective is to get Maria to plant all organic bananas. Assuming this goal is accomplished, what would be the total expected cost for the company? c) What is the probability the incremental cost is zero? 2a) How does the GMP affect Maria's expected profits, assuming all organic bananas are planted and what is the impact on the risk of losing money? b) How does this now compare to 100% conventional? c) How would this impact (or not) your recommendation to Maria on the amounts of each type of banana to plant? (Assume the initial recommendation was to be risk averse and plant zero organic bananas). Conventional Bananas Yield (tonnes per hectare) Price ($ per tonne) Organic Bananas Yield (tonnes per hectare) Price premium (%) Price ($ per tonne) Cost (8 per hectare) [ N ORTCRY Ny [CoRie-REN e} Decision Variables Conventional Hectares Planted Organic Hectares Planted TN Calculations Revenue ($ per hectare) Conventional Organic 100 10.0 $220 8.8 15.0% $253 $1.800 100 $2,200 Random Variable Parameters Correlation Matrix | Conventional yield | Organic yield |Conventional Price Distribution Mean Std Dev Correlation | |Conventional yield 1 Normal 10.0 0.8 Organic yield 0.7 1 Normal $220 $28 -0.3] [Conventional Price -0.5 0 1 Normal 838 24 0.7) Lognormal 15% 2.5% Normal $1.800 $300 0 25 50 75 RiskSimTable