Probability distribution of material cost per unit

Material Cost Probability Cumulative

Probability Material cost per probability

33 0.04 0.00-0.04 1.32

35 0.05 0.04-0.09 1.75

38 0.12 0.09-0.21 4.56

39 0.79 0.21-1.00 30.81

Total 1.00 38.44

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 Probability Cumulative

Probability Labor cost per Probability

22 0.02 0.00-0.02 0.44

23 0.34 0.02-0.36 7.82

24 0.05 0.36-0.41 1.20

25 0.39 0.41-0.80 9.75

28 0.20 0.80-1.00 5.60

Total 1 24.81

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

Utilities Probability Cumulative

Probability Utilities cost per unit

3 .43 0.00-0.43 1.29

4 .48 0.43-0.91 1.92

6 .09 0.91-1.00 .54

Total 1 3.75

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)