Question
master tech is a new software company that develops and markets productivity software for government applications. The following is used when developing a balance sheet:
master tech is a new software company that develops and markets productivity software for government applications. The following is used when developing a balance sheet: Gross profit = Net sales - Cost of sales net operating profit = Gross profit - administrative expenses - sales expenses sales costs = fixed costs + variable costs Net profit before taxes = Net operating profit - interest Net income = Net profit before taxes - Taxes Net sales are evenly distributed between $ 600,000 and $ 1,200,000. The cost sales are normally distributed, averaging $ 540,000 and a standard deviation of $ 20,000. Expenses sales have a fixed item that is evenly distributed between $ 75,000 and $ 110,000. The variable is estimated at 7% of net sales. Administrative costs follow. Develop a net income risk study using Crystal Ball and make a written report to the administration. The study must includes the following.
d) What is the probability that MasterTech will have zero net profit normal distribution, with an average of $ 50,000 and a standard deviation of $ 3,500. Interest costs are $ 10,000. THE company is taxed at a rate of 50%.
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