Abby’s candle shop sells candles. Abby would like to estimate her income and sales, she has...

Abby’s candle shop sells candles. Abby would like to estimate her income and sales, she has collected data from the last two months. The cost of each candle is $1 and she sells them for $2.50 each. She receives her candles every day from her supplier, the supplier brings in 500 candles a day for Abby to sell. If Abby runs out of candles she estimates that an unhappy customer will cost her $0.50. If Abby has to keep the candles for the next day she has a holding cost of $0.25 per candle. The demand for candles is a uniform distribution of between 400 and 550 candles a day. Simulate 100 days of sales, find the average income, the average holding cost and the average loss in good will.

Complete in Excel

Expert Solution

ekkarill92 answered 1 year ago

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