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Use the Information Below to Answer the Following Question(s) We Assume That the Production (Demand)volume Is Normally Distributed with the Following

Question 3

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Use the information below to answer the following question(s) .
Consider the following spreadsheet for an outsourcing decision model.
1  A  B 2 Outsourcing Decision Model 3 Data 45 Manufactured in-house 6 Fixed cost $60,0007 Unit variable cost $13089 Purchased from supplier 10 Unit cost $1801112 Demand volume $1,6001314 Model 1516 Total manufacturing cost 17 Total purchased cost 1819 Difference 20 Decision \begin{array} { | l | l | l | } \hline 1 & \ { \text { A } } & \text { B } \\\hline 2 & \text { Outsourcing Decision Model } & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Manufactured in-house } & \\\hline 6 & \text { Fixed cost } & \$ 60,000 \\\hline 7 & \text { Unit variable cost } & \$ 130 \\\hline 8 & & \\\hline 9 & \text { Purchased from supplier } & \\\hline 10 & \text { Unit cost } & \$ 180 \\\hline 11 & & \\\hline 12 & \text { Demand volume } & \$ 1,600 \\\hline 13 & & \\\hline 14 & \text { Model } & \\\hline 15 & & \\\hline 16 & \text { Total manufacturing cost } & \\\hline 17 & \text { Total purchased cost } & \\\hline 18 & & \\\hline 19 & \text { Difference } & \\\hline 20 & \text { Decision } & \\\hline\end{array}
We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100.For the unit cost, select the triangular distribution.It has a minimum value of $150, most likely value of $165, and a maximum value of $190.The number of trials per simulation is equal to 5,000 at a Sim.Random Seed of 1.Run the simulation and answer the following question(s) using the Risk Solver Platform.
-What is the expected loss determined from the simulation results?


A) $(78)
B) $(120)
C) $(60)
D) $(39)

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