TASK 1

A. Complete the attached “Simulation Template” to determine the following costs:

1. Average materials cost per unit

The first thing I had to do was figure out the random numbers interval in order to figure out the material cost per unit.

Materials

Probability Cost Random Numbers Interval*

0.2 $ 33.00 0.00 < 0 .20

0.33 $ 35.00 0.21 < 0.53

0.37 $ 38.00 0.54< 0.90

0.1 $ 39.00 0.91 < 1

*The random number interval came from the probability which was provided in the simulation template. I first start with 0.00 less than the probability which is 0.20 then we start at 0.21 less than 0.53. I came up with 0.53 from adding the initial probability of 0.20 and the second 0.33. Next I start at 0.54 less than 0.90 these figures come from adding 0.53 plus the third probability of 0.37. Lastly, I start at 0.91 less than 1 and again I adding 0.90 plus the last probability of 0.10.

Now let’s find the Average materials cost per unit. Let’s being by looking at the random numbers provided in the simulation template and apply the cost to the table given, keeping in mind that random numbers interval with fall differently.

Random Number Materials Cost per Unit

74 $ 38.00

57 $ 38.00

67 $ 38.00

41 $ 35.00

28 $ 35.00

75 $ 38.00

35 $ 35.00

79 $ 38.00

10 $ 33.00

95 $ 39.00

39 $ 35.00

27 $ 35.00

Matching the random numbers to the first table we can figure out where the random number falls and this is where the materials cost per unit is found.

Now we all the 12 costs per units amount from table 2 and divided by 12 in order to get the average.

38 + 38 + 38 + 35 + 35 + 38 + 35 + 38 + 33 + 39 +35 +35 = 437

Now 437/12 = 36.45

The average materials cost per unit is $36.45

2. Average labor cost per unit

I use the same...