Problem 12-11 In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll caled The Dougie that teaches children how to dance. The fixed cost to produce the dol is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per coll. During the holiday selling season, FTC will ses the calls for 542 each. If FTC overproduces the dolls, the excess doils will be sold in January through a distributor who has agreed to pay FTC $10 per det. Dersand for new toys during the holiday selling season is extremely uncertain, Forecasts are for expected sales of 60,000 dolls with standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before akizing the decision Create a what if spreadtheet model using a formula that reiate the values of production Quantity demand, sales, revenue from sales, amount of surplus, revence from sales of surplus, total cost, and net profit. What is the profit corresponding to average demand (60,000 units)? 5 b. Modeling demand as a normal random variable with a mean of 60,000 and a standard deviation of 15,000, simulate the sales of the Dougie col using a production quantity of 60,000 units. What is the estimate of the average profit associated with the production quantity of 60,000 dolls? Round your answer to the nearest dollar How dges this compare to the pront corresponding to the average demand (as computed in part())? Average profit is the profit corresponding to average demand. c. Before making a final decision on the production quantity management wants an analysis of a more aggressive 70,000-unit production quantity and a more conservative 50,000 unit production quantity, Run your simulation with these two production quantities. What is the mean profit associated with each? Round your answers to the nearest dollar 50,000-unit production quantity: 5 70,000-unit production quantity: 5 d. In add tion to mean profit, what other factors should FTC consider in determining a production quantity? The input in the box below will not be graded, but may be reviewed and considered by your instructor Check My Work more Check My Work uses remaining Previous Next > All work saved Emal instructor Save and it Submit Ansignment for Gradine Problem 12-11 In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll caled The Dougie that teaches children how to dance. The fixed cost to produce the dol is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per coll. During the holiday selling season, FTC will ses the calls for 542 each. If FTC overproduces the dolls, the excess doils will be sold in January through a distributor who has agreed to pay FTC $10 per det. Dersand for new toys during the holiday selling season is extremely uncertain, Forecasts are for expected sales of 60,000 dolls with standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before akizing the decision Create a what if spreadtheet model using a formula that reiate the values of production Quantity demand, sales, revenue from sales, amount of surplus, revence from sales of surplus, total cost, and net profit. What is the profit corresponding to average demand (60,000 units)? 5 b. Modeling demand as a normal random variable with a mean of 60,000 and a standard deviation of 15,000, simulate the sales of the Dougie col using a production quantity of 60,000 units. What is the estimate of the average profit associated with the production quantity of 60,000 dolls? Round your answer to the nearest dollar How dges this compare to the pront corresponding to the average demand (as computed in part())? Average profit is the profit corresponding to average demand. c. Before making a final decision on the production quantity management wants an analysis of a more aggressive 70,000-unit production quantity and a more conservative 50,000 unit production quantity, Run your simulation with these two production quantities. What is the mean profit associated with each? Round your answers to the nearest dollar 50,000-unit production quantity: 5 70,000-unit production quantity: 5 d. In add tion to mean profit, what other factors should FTC consider in determining a production quantity? The input in the box below will not be graded, but may be reviewed and considered by your instructor Check My Work more Check My Work uses remaining Previous Next > All work saved Emal instructor Save and it Submit Ansignment for Gradine