The management of Acme Manufacturing Company is considering the introduction of a new product.

The fixed cost to begin the production of the product is $100,000.

The variable cost for the product is uniformly distributed between $20 and $30 per unit.

Demand for the product is best described by a normal probability distribution with a mean of 5000 units and a standard deviation of 1200 units.

(a) Perform a simulation of 500 trials.

(b) What are the mean variable cost/unit and mean demand from the simulation?

(c) What are the mean and standard deviation of the profit from the simulation?

(d) Create a histogram showing the profit distribution.

(e) What is the probability the product will result in a loss?

(f) What is the value at risk (at 5%)?

(g) Suppose Acme wants to introduce the product only if probability of loss is no more than 10%. Based on this, what is your recommendation?

Please show how to answer in excel. We have to submit the excel file, not just give the answer. Thank you!!

Acme Summary Statistics Bin Selling Price per Unit Fixed Cost $50 $100,000 Variable Cost (Uniform Distribution) Lower bound $20 Upper bound $30 Sample Size Mean Profit Standard Deviation Minimum Profit Maximum Profit Count of Losses Probability of Loss Value at risk (at 5%) -60000 -40000 -20000 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 Demand (Normal Distribution) Mean Standard Dev 5000 1200 Simulation Trials (Selling price - Unit VC) Dmd - FC (6) (2) (3) (4) (5) Variable Cost per Unit Trial Demand Profit 1 2 3 4 5 6 7 Random Number 0.005 0.969 0.385 0.556 0.965 0.537 0.268 0.604 0.301 0.243 0.409 0.544 0.200 0.452 0.758 Random Number 0.853 0.630 0.253 0.225 0.643 0.241 0.345 0.280 0.052 0.873 0.655 0.458 0.822 0.468 0.453 8 9 10 496 497 498 499 500 Average #DIV/0! #DIV/0! #DIV/0! Acme Summary Statistics Bin Selling Price per Unit Fixed Cost $50 $100,000 Variable Cost (Uniform Distribution) Lower bound $20 Upper bound $30 Sample Size Mean Profit Standard Deviation Minimum Profit Maximum Profit Count of Losses Probability of Loss Value at risk (at 5%) -60000 -40000 -20000 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 Demand (Normal Distribution) Mean Standard Dev 5000 1200 Simulation Trials (Selling price - Unit VC) Dmd - FC (6) (2) (3) (4) (5) Variable Cost per Unit Trial Demand Profit 1 2 3 4 5 6 7 Random Number 0.005 0.969 0.385 0.556 0.965 0.537 0.268 0.604 0.301 0.243 0.409 0.544 0.200 0.452 0.758 Random Number 0.853 0.630 0.253 0.225 0.643 0.241 0.345 0.280 0.052 0.873 0.655 0.458 0.822 0.468 0.453 8 9 10 496 497 498 499 500 Average #DIV/0! #DIV/0! #DIV/0