Develop a simulation model for a three-year financial analysisof total profit based on the following data and information. Salesvolume in the first year is estimated to be 100,000 units and isprojected to grow at a rate that is normally distributed with amean of 7% per year and a standard deviation of 4%. The sellingprice is $10, and the price increase is normally distributed with amean of $0.50 and standard deviation of $0.05 each year. Per-unitvariable costs are $3, and annual fixed costs are $200,000.Per-unit costs are expected to increase by an amount normallydistributed with a mean of 5% per year and standard deviation of2%. Fixed costs are expected to increase following a normaldistribution with a mean of 10% per year and standard deviation of3%. Based on 500 simulation trials, compute summary statistics forthe average three-year undiscounted cumulative profit. The questionis from following book and from Chapter 12 question 22 Textbook:James Evans, Business Analytics, 3nd edition, 2019, PearsonEducation, Pearson. ISBN: 13:978-0-13-523167-8
