EXAMPLE 13.7-13 (Investment and Budgeting Problem) The management of ABC company is considering the question of marketing a new product The fixed cost required in the project is 4,000. Three factors are uncertain viz. the selling price, variable cost and the annual sales volume. The product has a life of only one year. The management has the data on these three factors as under: TABLE 13.23 Selling price Probability Variable cost Probability Sales volume Probability () units 3 02 03 2,000 0.5 2 06 3,000 03 5.000 Consider the following sequence of thirty random numbers 81 32 60; 04 46 31 67 25 24; 10400239 68 08: 59 66 90 12 64 79 31 86 68: 82 89 25 11 98 16. Using the sequence (First 3 random numbers for the first trial, etc.) simulate the average profit for the above project on the basis of 10 trials. 4 0.3 03 0.4 01 b47