Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the probability that ST will make a profit higher than $110K with this production plan? Explain why the risk profile looks as it
What is the probability that ST will make a profit higher than $110K with this production plan? Explain why the risk profile looks as it does. Specifically, try to explain why there are two peaks in the risk profile.
Ill @RISK - Output: B14 X Total Profit Statistics -00 $110,000 Total Profit 85.2% 14.8% Cell B14 1.4 Minimum $22,602.39 Maximum $130,000.00 1.2 Mean $93,500.01 90% CI + $318.98 1.0 - Mode $100,000.00 0.8 Median @RISK Course Version $98,276.09 Values x 10^-4 Std Dev $19,390.96 0.6 London Business School Skewness -0.1999 Kurtosis 3.2504 0.4 - Values 10000 Errors 0 0.2 Filtered 0 Left X -00 0.0 Left P 0.0% $40,000 $20,000 $60,000 $80,000 Right X $110,000 $140,000 $100,000 $120,000 Right P 85.2% nif v ? A Y A F G CloseA B C Red Black 2 Expected Cost per Unit $3.6 $3.6 3 Retail Price per Unit $8 $8 4 Reseller Price per Unit $2 $2 6 Production Quantity 15000 10000 Expected Demand 15000 10000 8 Total Cost $54,000.00 $36,000.00 10 Revenue in Selling Period $120,000.00 $80,000.00 11 Revenue End of Season $0.00 $0.00 12 13 Profit $66,000.00 $44,000.00 14 Total Profit $110,000.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started