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The following is a deterministic model to estimate the profit that would be realized by opening a corner hot dog stand. Use this model to

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The following is a deterministic model to estimate the profit that would be realized by opening a corner hot dog stand. Use this model to develop a Monte Carlo simulation to characterize the uncertainty of the contribution to profit. The distributions that you will use to characterize the uncertain quantities are listed below. Given your model, what is the probability that the Contribution to Profit is $800 or less? Distributions to use Normal with mean=100000 and std dev = 10000 Uniform between 25% and 35% ASSUMPTIONS: Market Size Market Proportion Price Variable Cost Fixed Cost (Cell C5) 100000 (C6) 25% (C7) $0.45 (C8) $0.20 (C9) $5,622 Triangle with min=$0.15, most likely =$0.20 and max=$0.25 Discrete with P($4,955)=10%, P($5,622)=80% and P($6,211)=10% FORCAST: Net Contribution to Profit $628.00 =C5*C6*(C7-C8)-C9 10% 20% 30% 40%

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