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The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $50 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Labor Procurement Cost ($) Transportation Cost ($) Probability Cost ($) Probability Probability 10 0.3 20 0.15 3 0.7 11 0.35 22 0.25 5 0.3 12 0.35 24 0.3 25 0.3 Management believes the project may not be sustainable if the profit per unit is less than $10. Use simulation to estimate the probability the profit per unit will be less than $10. If required, round your answer to one decimal place. % The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $50 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Labor Procurement Cost ($) Transportation Cost ($) Probability Cost ($) Probability Probability 10 0.3 20 0.15 3 0.7 11 0.35 22 0.25 5 0.3 12 0.35 24 0.3 25 0.3 Management believes the project may not be sustainable if the profit per unit is less than $10. Use simulation to estimate the probability the profit per unit will be less than $10. If required, round your answer to one decimal place. %
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