PLEASE PROVIDE THE Prob. of Profit >= 100 mil

GM is trying to decide whether to introduce a new car model. The selling price for the car will be $32,000. The fixed cost of developing the car is assumed to be uniformly distributed between $600 million and $1.1 billion The demand for the car is described by a normal distribution with a mean of 120,000 units and a standard deviation of 30,000. The unit variable cost for the car is distributed as shown below Cost per Unit Probability $17,000 $19,000 $20,000 $22,000 0.15 0.35 0.30 0.20 (c) GM is willing to introduce the car if there is at least 95% probability of making a profit AND at least 85% probability of making profit of at least $100 million. Compute these two probabilities and make a recommendation New Car Input Data All the $ amounts are in $thousands Unit Selling Price $32 Fixed Cost (Uniform Distribution) Lower bound Upper bound Unit Variable Cost $600,000 $1,100,000 Upper Limit 0.15 0.50 Cost per Unit $17 $19 Probability Lower Limit 0.15 0.00 Demand (Normal Distribution) Mean Standard Dev 0.35 0.15 $20 $22 120,000 0.30 0.50 0.80 30,000 0.20 0.80 1.00 Simulation Trials (Selling price - Unit VC) Dmd - FC (1) (2) (3) (4) (5) (6) (7) (8) Random Random Random Number Unit Variable Cost Fixed Cost Profit Trial Number Number Demand 1 0.957 0.611 0.652 2 0.040 0.443 0.331 0.757 0.154 0.970 4 0.807 0.253 0.883 0.798 0.600 0.191 6 0.854 0.495 0.192 0.697 0.696 0.373 7 8 0.796 0.441 0.909 0.951 0.968 0.461 0.936 10 0.140 0.175 996 0.245 0.569 0.075 0.509 0.985 997 0.976 998 0.785 0.580 0.777 0.421 999 0.568 0.091 1000 0.855 0.229 0.936 #DIV/ 0! #DIV/ 0! #DIV/ 0! #DIV/0! GM is trying to decide whether to introduce a new car model. The selling price for the car will be $32,000. The fixed cost of developing the car is assumed to be uniformly distributed between $600 million and $1.1 billion The demand for the car is described by a normal distribution with a mean of 120,000 units and a standard deviation of 30,000. The unit variable cost for the car is distributed as shown below Cost per Unit Probability $17,000 $19,000 $20,000 $22,000 0.15 0.35 0.30 0.20 (c) GM is willing to introduce the car if there is at least 95% probability of making a profit AND at least 85% probability of making profit of at least $100 million. Compute these two probabilities and make a recommendation New Car Input Data All the $ amounts are in $thousands Unit Selling Price $32 Fixed Cost (Uniform Distribution) Lower bound Upper bound Unit Variable Cost $600,000 $1,100,000 Upper Limit 0.15 0.50 Cost per Unit $17 $19 Probability Lower Limit 0.15 0.00 Demand (Normal Distribution) Mean Standard Dev 0.35 0.15 $20 $22 120,000 0.30 0.50 0.80 30,000 0.20 0.80 1.00 Simulation Trials (Selling price - Unit VC) Dmd - FC (1) (2) (3) (4) (5) (6) (7) (8) Random Random Random Number Unit Variable Cost Fixed Cost Profit Trial Number Number Demand 1 0.957 0.611 0.652 2 0.040 0.443 0.331 0.757 0.154 0.970 4 0.807 0.253 0.883 0.798 0.600 0.191 6 0.854 0.495 0.192 0.697 0.696 0.373 7 8 0.796 0.441 0.909 0.951 0.968 0.461 0.936 10 0.140 0.175 996 0.245 0.569 0.075 0.509 0.985 997 0.976 998 0.785 0.580 0.777 0.421 999 0.568 0.091 1000 0.855 0.229 0.936 #DIV/ 0! #DIV/ 0! #DIV/ 0! #DIV/0