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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 $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:

Procurement Cost

Probability

Labor Cost

Probability

Transportation Cost

Probability

10

0.25

20

0.10

3

0.75

11

0.45

22

0.25

5

0.25

12

0.30

24

0.35

25

0.30

Construct a simulation model to estimate the mean profit per unit.

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