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Please state what exactly the answer is in the format given and how you get it, thanks. The management of Madeira Manufacturing Company is considering
Please state what exactly the answer is in the format given and how you get it, thanks.
The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is exist26,000. The variable cost for the product is expected to be between exist21 and exist28 with a most likely value of exist26 per unit. The product will sell for exist50 per unit. Demand for the product is expected to range from 400 to 1400 units, with 1200 units the most likely demand. Let c = variable cost per unit x = demand a. Develop the profit model for this product. Enter your answer in the form of an expression. (Example: (c + 10) middot x + 800) Profit = b. Provide the base-case, worst-case and best-case analyses. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Base case: Profit = exist Worst case: Profit = exist Best case: Profit = exist c. Discuss why simulation would be desirable. A simulation the probability of each scenarioStep by Step Solution
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