Sanotronics LLC is a start~up company that manufactures medical devices for use in hospital clinics. Inspired by experiences with family members who have battled cancer, Sanotronics's founders have developed a prototype for a new device that limits health care workers\" exposure to chemotherapy treatments while they are preparing, administering, and disposing of these hazardous medications. The new device features an innovative design and has the potential to capture a substantial share of the market. Sanotronics would like an analysis of the rst-year prot potential for the device. Because of Sanotronics's tight cash ow situation, management is particularly concerned about the potential for a loss. Sanotronics has identied the key parameters in determining rst-year prot: selling price per unit (p), rst-year administrative and advertising costs (Cal, direct labor cost per unit {CL}, parts cost per unit (CD), and rst-year demand {d}. After conducting market research and a nancial analysis, Sanotronics estimates with a high level of certainty that the device's selling price will be $249 per unit and that the rst-year administrative and advertising costs will total $1,000,000. Sanotronics is not certain about the values for the cost of direct labor, the cost of parts, and the rst- year demand. At this stage of the planning process, Sanotronics's base estimates of these inputs are $45 per unit for the direct labor cost, $90 per unit for the parts cost, and 15,000 units for the rst- year demand. Based on recent wage rates and estimated processing requirements of the device, Sanotronics believes that the direct labor cost will range from $43 to $47 per unit and is described by the discrete probability distribution. There is a 10% probability that the direct labor cost will be $43 per unit, a 20% probability that the direct labor cost will be $44 per unit, 40% it will be $45, 20% it will be $46, and 10% that it will be $47. Sanotronics is relatively unsure of the parts cost because it depends on many factors, including the general economy, the overall demand for parts, and the pricing policy of Sanotronics's parts suppliers. Sanotronics is condent that the parts cost will be between $80 and $100 per unit but is unsure as to whether any particular values between $80 and $100 are more likely than others. Therefore, Sanotronics decides to describe the uncertainty in parts cost with a uniform probability distribution. Based on sales of comparable medical devices, Sanotronics believes that rst-year demand is described by the normal probability distribution. The mean of rst-year demand is 15,000 units and the standard deviation of 4,500 units describes the variability in the rst-year demand. Question 1 5 pts What is the expected rstyear prot based on the company's base estimates? Question 2 If pts We decide to conduct a simulation to provide more information the expected range of outcomes for prot. Use Excel to generate 1,000 random outcomes for direct labor, parts cost, and demand {decimals for parts cost and demand are ne]. Use these values to nd the prot for each of the 1,000 random trials. What is the average prot of your simulation? Question 3 8 pts What is the probability that prot is negative (answers can be decimals or percents}? There are two ways to conduct this analysis: 1. Use the 'Rank and Percentile' tool under 'Data Analysis' 2. Use the =countif function to count the number of trials with a prot less than zero