iCessories -- To Continue or Discontinue?

Full-Price Demand
Triangular
Min 45,000
Most-Likely 75,000
Max 115,000

Fixed Cost $500,000

Variable Cost $6.00

Full-Price Discount
Sales Price $12.00 $10.00
Given Info Computations
Full-Price Discount

Demand 74,188.659 60,000

Rounded Demand 74,189 60,000
Sales Revenue $890,268 $600,000

Sales Revenue $1,490,268

Total Fixed Cost ($500,000)
Financial
Data Variable Cost ($805,134)
Total Profit $185,134

CUSTOMIZED SIMULATION RESULTS

Mean $114,000
Std Dev $145,394
Pr{Profit > $0} 0.74412
Maximum $428,230
95-th Percentile $338,343
Profit $224,638
75-th Percentile
Median $129,637
25-th Percentile ($4,030)
5-th Percentile ($132,454)
Minimum ($227,768)
 Discount Demand
0.60 Probability of Receiving Large Order
60,000 Size of Large Order (if received)

Computations
Large Order
(1=Yes; 0=No)
1

Recommendation

It depends but since probability of

profit over 0 is 75%, I would suggest
continue for another year.