What is the expected break-even volume

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Reference no: EM131791150

Recall the formula to calculate the break-even volume from Chapter 8 as a function of the fixed cost F, the selling price p, and the variable cost v. This question requires you to calculate the expected break-even volume when there is uncertainty. The fixed cost F follows a normal distribution with mean 2464 and standard deviation 132. The selling price p follows a beta distribution with Alpha = 3, Beta = 4, A = 29, and B = 91. The variable cost follows a beta distribution with Alpha = 6, Beta = 2, A = 14, and B = 27. (A and B in the beta distribution represent the minimum and maximum, respectively.) Use SIPMath to simulate the break-even volume with 100000 trials. What is the expected break-even volume?

Reference no: EM131791150

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