Question

1. The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows:

   Procurement Cost ($)	Probability	Labor Cost ($)	Probability	Transportation Cost ($)	Probability
   10	0.25	20	0.10	3	0.75
   11	0.45	22	0.25	5	0.25
   12	0.30	24	0.35
   		25	0.30

   1. Compute profit per unit for the base-case, worst-case, and best-case scenarios.
      
      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 per unit. If required, round your answer to the nearest cent.
      
      Mean profit per unit = $ ______
   3. Management believes the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability the profit per unit will be less than $5. If required, round your answer to two decimal places.
      
      _______%

Please fill out all of the blanks in A-C! Thank you!

Answer 1