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The following financial information was presented to potential investors for the launch of a new high-end portable barbecue: Units Sold Probability Fixed cost $110,000 500
The following financial information was presented to potential investors for the launch of a new high-end portable barbecue:
Units Sold | Probability | Fixed cost | $110,000 | |
500 | .13 | Variable cost | $55 / unit | |
750 | .52 | Revenue | $230 / unit | |
1000 | .35 |
Use the random numbers .09, .16, .89, .23, .56, .32, .26, and .78 to simulate eight trials. What is the net profit for each trial?
What is the average net profit?
Copy your Excel table(s) for the simulation.
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