# QAT task 1

Probability distribution of material cost per unit Material CostProbabilityCumulative

ProbabilityMaterial cost per probability

330.040.00-0.041.32

350.050.04-0.091.75

380.120.09-0.214.56

390.790.21-1.0030.81

Total1.0038.44

Average material cost per unit = (33*0.04) + (35*0.05) + (38*0.12) + (39*0.79) = $38.44

Simulation results

A.1.b. Average labor cost per unit

Probability distribution of labor cost per unit Labor cost

ProbabilityCumulative

ProbabilityLabor cost per Probability

220.020.00-0.020.44

230.340.02-0.367.82

240.050.36-0.411.20

250.390.41-0.809.75

280.200.80-1.005.60

Total124.81

Average labor cost per unit = (22*.02) + (23*.34) + (24*.05) + (25*.39) + (28*.20) = $24.81 Simulation results

A.1.c Average utilities cost per unit

Probability distribution of utilities cost per unit UtilitiesProbabilityCumulative

ProbabilityUtilities cost per unit

3.430.00-0.431.29

4.480.43-0.911.92

6.090.91-1.00.54

Total13.75

Average utilities cost per unit = (3*.43) + (4*.48) + (6*.09) = $3.75

Simulation results

A.1.d. Average total cost per unit

Average cost per unit = Average material cost + average labor cost + average utilities cost 38.44 + 24.81 + 3.75 = $67.00

A.2. Show tables you used to correctly determine the costs in part A1a-A1d. ***Given in corresponding part.

B.1. Average cost per unit + markup = selling price per unit Using the probability distribution the selling price per unit is $87.42 (67.42 + 20.00)

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