Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. basic math
  3. problem 16-01 the management of brinkley corporati

Problem 16-01 The management of Brinkley Corporation is interested in using simulation to estimate the profit per...

60.1K

Verified Solution

Question

Basic Math

Problem 16-01

The management of Brinkley Corporation is interested in usingsimulation to estimate the profit per unit for a new product. Theselling price for the product will be $45 per unit. Probabilitydistributions for the purchase cost, the labor cost, and thetransportation cost are estimated as follows:

Procurement
Cost ($)
Probability
Labor Cost ($)
Probability		Transportation
Cost ($)
Probability
100.25200.1030.75
110.45220.2550.25
120.30240.35
250.30
  1. Compute profit per unit for the base-case, worst-case, andbest-case.

    Profit per unit for the base-case: $ __________

    Profit per unit for the worst-case: $ __________

    Profit per unit for the best-case: $ __________
  2. Construct a simulation model to estimate the mean profit perunit. If required, round your answer to the nearest cent.

    Mean profit per unit = $ _________
  3. Why is the simulation approach to risk analysis preferable togenerating a variety of what-if scenarios?
  4. Management believes the project may not be sustainable if theprofit per unit is less than $5. Use simulation to estimate theprobability the profit per unit will be less than $5. If required,round your answer to two decimal places.

    __________%

Answer & Explanation Solved by verified expert
3.8 Ratings (426 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Proteins that use the secretory pathway for folding and trafficking are over- represented in protein-misfolding diseases. Describe...

Biology
1.2K views

9. Which G protein signaling pathway elevates calcium? A. What is the pathway for elevation of...

Chemistry
1.2K views

Write the combustion reaction for uracil (C4H4N2O2 (s)) and calculate the standard enthalpy for the combustion...

Biology
1.2K views

For each trial compute the mol of titrant molarity x L and keep the number...

Basic Math
1.2K views

In ?MNO, MO is extended through point O to point P,m?MNO: - (3x + 11),...

Accounting
1.2K views

Prepare the statement of profit or loss (including notes thereto) of Mix & More Limited...

Accounting
1.2K views

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2023....

Accounting
1.2K views

Power Delve Corporation designs and produces a line of golf equipment and golf apparel Power...

Accounting
1.2K views

Assume the same A/R and ADA balances and the same net sales as in question...

Accounting
1.2K views

Dallas Company manufactures desks for schools. The current year operating budget is based on sales...

Accounting
1.2K views

Yancey Productions is a film studio that uses a job-order costing system. The company's direct...

Accounting
1.2K views

#5 Facebook is considering two proposals to overhaul its network infrastructure....