Question

Profit Analysis. A consumer electronics firm produces a line of battery rechargers for cell phones. The following distributions apply: Unit price triangular with a minimum of $18.95, most likely value of $24.95, and a maximum of $26.95. Unit cost uniform with a minimum of $12.00 and a and a maximum of $15.00 Quantity sold 10,000 - 250 x Unit proce, plus a random term given by a normal distribution with a mean of 0 and a standard deviation of 10 Fixed costs normal with a mean of $30,000 and a standard deviation of $5,000 a) What is the expected profit? b) What is the pobability of a loss? c) What is the maximum loss?

Answer 1