A B C D E F G H I J K L

1 KMBA Ad Sales
2
Period 2
3
(Political Sales)
4 Normal Mean 60
5 Demand Standard Deviation 15
6

Period 1 Period 2
7
(Advance Sales) (Political Sales)
8 Per Unit Sales Revenue per Ad $5,000 $6,000
9 Financial Data Salvage Revenue per Ad $1,000
10 Given Info Computations
Period 1 Period 2
11
(Advance Sales) (Political Sales)
12 Beginning Inventory of Ads 100 60
13 Demand 61.177
14 Rounded Demand 61
15 Ad Sales 40 60
16 Ending Inventory of Ads 60 0
17 Sales Revenue $560,000
Total
18 Salvage Revenue $0
Financial Data
19 Total Revenue $560,000
20
21 CUSTOMIZED SIMULATION RESULTS Answer to Question a)
22 Advance Ad Sale Quantity Q 40 50 60
23 Simulation # 1 2 3
24 Revenue Mean $530,085 $538,671 $536,823
25 Revenue Std Dev $43,801 $26,938 $13,606
26 Revenue Maximum $560,000 $550,000 $540,000 Flaw of averages
27 Revenue Minimum $250,000 $290,000 $330,000
28 Downside Risk: Pr{Revenue $500,000} 0.22164 0.09680 0.03338
29 Upside Potential: Pr{Revenue > $525,000} 0.66762 0.83314 0.93320
30 Revenue 5-th Percentile $435,000 $475,000 $515,000