Question

Using excel create a simulation.

Barrels
Probability| 30: 0.10 | 35 : 0.18 | 40: 0.24 | 45: 32 | 50: 0.16
Revenue
Probability |€50: 0.22 | €60 : 0.42| €70 : 0.26 | €80 : 0.10

Biales decided that if she were to create a simulation assuming 25 truckloads out of Italy per year she could determine if it would be profitable to continue to operate there next year. She estimates that each shipment to the Dresden dump site costs 800 Euros, includingse driver, gasoline, and truck expenses; other cargo and loading and unloading costs average 120 Euros per shipment. In addition, it costs 41,000 Euros per year to operate the Italian office, including salaries and indirect overhead costs from the home office in Dusseldorf.
Given Sybil’s assumptions, is it likely the shipments in Italy next year will generate enough revenues to cover Biales' costs there?

Using excel create a simulation.

Answer 1