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You have just joined a management consulting firm. You are sent out to help the Free-Mark Abbey winery with a decision situation. They are
You have just joined a management consulting firm. You are sent out to help the Free-Mark Abbey winery with a decision situation. They are interested in maximizing the profit: - Profit = (Amount Sold) * [(Selling price / unit) (Cost / unit)] They give you 3 fractiles (High-Base-Low) for several uncertainties: Uncertainty Amount Sold Low Base High 100,000 500,000 1,000,000 Selling Price/unit 13 17 30 Cost/ Unit 5 15 25 a- Sketch the tornado diagram for profit (one-way sensitivity analysis). b- Explain how Profit is sensitive to each of the variables?
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