A company sells a number of low-cost, high volume cell phone accessory products. For one such product, it is equally likely that the annual unit sales will be low or high. If sales are low (60,000), the company can sell the product for $10 per unit. If sales are high (100,000), a competitor will enter the market and the company will be able to sell the product for only $8 per unit. The variable cost per unit has a 25% chance of being $6, a 50% change of being $7.50, and a 25% chance of being $9. Annual fixed costs are $30,000. Required:
Use simulation to estimate the company’s expected annual profit.