In: Economics
Prepare a minimum 1,050-word analysis to address the following:
Region Analysis
Regional alliances and economic integration
Physical environment and its effect on trade
Political stability
Economic conditions
Finance options available
Social, health, and environmental conditions
Terrorism threats
Country Risk Analysis
Political and legal stability
Economic conditions
Finance options available
Physical environment and distribution channels
Social, health, and environmental conditions
Cultural and ethical considerations
Organization and Product or Service Analysis
Description of your organization
Legal structure of organization
Market analysis
Description of product to meet the need
FC VC SP
mean 2,465 alpha 4
5
SD
127 beta 6 3
A 20 34
FC + VC * units = Sell price * units (when we break even)
units = FC / (SP - VC)
For simulating the fixed cost (following normal with mean 2465 and sd 127), in excel write the formula norm.inv(rand(),2465,127)
For the variable cost, write the formula beta.inv(rand(),4,6, 20,32)
For the selling price, write the formula beta.inv(rand(),5,3, 34,92)
fourth column will have units as FC/ (SP - VC). drag the 4 columns to 100,000 observations. 100,000 simulations yielded the average units as 57
50 sample simulations as shown below
SIM selling price variable cost fixed cost units
1
64
27 2,447
65
2
62
28 2,251
66
3
68
25 2,603
61
4
89
23 2,208
33
5
76
27 2,489
51
6
76
28 2,468
51
7
70
24 2,379
52
8
75
27 2,584
54
9
81
24 2,475
44
10
75
23 2,537
48
11
77
26 2,478
49
12
73
23 2,502
50
13
69
23 2,600
56
14
74
28 2,446
53
15
57
23 2,659
78
16
59
24 2,334
67
17
75
23 2,397
46
18
71
24 2,629
55
19
57
29 2,475
86
20
68
28 2,508
63
21
79
24 2,090
38
22
63
26 2,461
67
23
51
27 2,436
100
24
85
24 1,966
32
25
71
23 2,293
48
26
66
24 2,250
53
27
69
25 2,515
56
28
63
24 2,449
61
29
82
26 2,551
45
30
68
28 2,581
64
31
66
24 2,415
58
32
64
27 2,620
70
33
50
24 2,421
94
34
54
23 2,382
77
35
75
23 2,500
48
36
73
23 2,643
53
37
65
22 2,540
59
38
90
23 2,615
39
39
71
25 2,323
50
40
52
23 2,437
85
41
69
25 2,683
61
42
60
23 2,571
70
43
74
24 2,512
50
44
71
26 2,420
54
45
69
28 2,323
57
46
74
22 2,430
46
47
70
24 2,433
53
48
73
27 2,390
52
49
68
23 2,503
56
50
72
25 2,347
50J