The manufacturer of a particular bicycle model has the following costs associated with

the management of this product’s inventory. In particular, the company currently

maintains an inventory of 1000 units of this bicycle model at the beginning of each
year. If X units are demanded each year and X is less than 1000, the excess supply,
1000 - X units, must be stored until next year at a cost of $50 per unit. If X is greater
than 1000 units, the excess demand, X - 1000 units, must be produced separately at an
extra cost of $80 per unit. Assume that the annual demand (X) for this bicycle model is
normally distributed with mean 1000 and standard deviation 75.
a. Find the expected annual cost associated with managing potential shortages or
surpluses of this product.
b. Find two annual total cost levels, equidistant from the expected value found in part a,
such that 95% of all costs associated with managing potential shortages or surpluses of
this product are between these values. (Continue to use simulation.)
c. Comment on this manufacturer’s annual production policy for this bicycle model in
light of your findings in part b.
Inventory costs

Initial inventory 1000

Unit storage cost $50
Unit shortage cost $80

Normally distributed demand

Mean 1000
Stdev 75

Simulation of 1000 scenarios Note: All answers here are base

Demand Storage cost Shortage cost Total cost Part (a)
920 $4,000 $0 $4,000 Expected annual costs
1006 $0 $480 $480 Storage
1035 $0 $2,800 $2,800 Shortage
898 $5,100 $0 $5,100 Total
1066 $0 $5,280 $5,280
942 $2,900 $0 $2,900 Part (b)
1041 $0 $3,280 $3,280 2.5th percentile
927 $3,650 $0 $3,650 97.5th percentile
986 $700 $0 $700
1064 $0 $5,120 $5,120 Part (c
Part (c ):): The
The most
most striking
striking observa
observ
1143 $0 $11,440 $11,440 variability in
variability in total
total cost.
cost. ItIt could
could ea
ea
1106 $0 $8,480 $8,480 couple hundred
couple hundred dollars
dollars or
or more
more tha
tha
mean total
mean total cost
cost (cell
(cell G16)
G16) isis pretty
pretty
950 $2,500 $0 $2,500 around $3800 to
around $3800 to $3900. $3900.
1072 $0 $5,760 $5,760
984 $800 $0 $800
1005 $0 $400 $400
975 $1,250 $0 $1,250
993 $350 $0 $350
974 $1,300 $0 $1,300
988 $600 $0 $600
1045 $0 $3,600 $3,600
964 $1,800 $0 $1,800
1027 $0 $2,160 $2,160
1005 $0 $400 $400
1045 $0 $3,600 $3,600
1002 $0 $160 $160
975 $1,250 $0 $1,250
949 $2,550 $0 $2,550
1015 $0 $1,200 $1,200
1186 $0 $14,880 $14,880
942 $2,900 $0 $2,900
1060 $0 $4,800 $4,800
1048 $0 $3,840 $3,840
1021 $0 $1,680 $1,680
1106 $0 $8,480 $8,480
1066 $0 $5,280 $5,280
1016 $0 $1,280 $1,280
968 $1,600 $0 $1,600
1087 $0 $6,960 $6,960
1041 $0 $3,280 $3,280
950 $2,500 $0 $2,500
1001 $0 $80 $80
910 $4,500 $0 $4,500
1003 $0 $240 $240
996 $200 $0 $200
997 $150 $0 $150
865 $6,750 $0 $6,750
850 $7,500 $0 $7,500
1059 $0 $4,720 $4,720
931 $3,450 $0 $3,450
904 $4,800 $0 $4,800
993 $350 $0 $350
975 $1,250 $0 $1,250
932 $3,400 $0 $3,400
1107 $0 $8,560 $8,560
895 $5,250 $0 $5,250
895 $5,250 $0 $5,250
1065 $0 $5,200 $5,200
1004 $0 $320 $320
972 $1,400 $0 $1,400
1010 $0 $800 $800
957 $2,150 $0 $2,150
889 $5,550 $0 $5,550
995 $250 $0 $250
919 $4,050 $0 $4,050
1090 $0 $7,200 $7,200
1000 $0 $0 $0
1045 $0 $3,600 $3,600
1102 $0 $8,160 $8,160
1012 $0 $960 $960
 962 $1,900 $0 $1,900
926 $3,700 $0 $3,700
1003 $0 $240 $240
1134 $0 $10,720 $10,720
1031 $0 $2,480 $2,480
1102 $0 $8,160 $8,160
1162 $0 $12,960 $12,960
1041 $0 $3,280 $3,280
1060 $0 $4,800 $4,800
1161 $0 $12,880 $12,880
1071 $0 $5,680 $5,680
1108 $0 $8,640 $8,640
1024 $0 $1,920 $1,920
1126 $0 $10,080 $10,080
902 $4,900 $0 $4,900
880 $6,000 $0 $6,000
1004 $0 $320 $320
983 $850 $0 $850
1056 $0 $4,480 $4,480
1132 $0 $10,560 $10,560
952 $2,400 $0 $2,400
1091 $0 $7,280 $7,280
998 $100 $0 $100
914 $4,300 $0 $4,300
963 $1,850 $0 $1,850
1030 $0 $2,400 $2,400
1030 $0 $2,400 $2,400
1000 $0 $0 $0
1003 $0 $240 $240
1079 $0 $6,320 $6,320
962 $1,900 $0 $1,900
1183 $0 $14,640 $14,640
1116 $0 $9,280 $9,280
1090 $0 $7,200 $7,200
955 $2,250 $0 $2,250
1051 $0 $4,080 $4,080
1099 $0 $7,920 $7,920
940 $3,000 $0 $3,000
1000 $0 $0 $0
1038 $0 $3,040 $3,040
1018 $0 $1,440 $1,440
1052 $0 $4,160 $4,160
1003 $0 $240 $240
1145 $0 $11,600 $11,600
993 $350 $0 $350
1066 $0 $5,280 $5,280
932 $3,400 $0 $3,400
882 $5,900 $0 $5,900
1096 $0 $7,680 $7,680
916 $4,200 $0 $4,200
949 $2,550 $0 $2,550
952 $2,400 $0 $2,400
1040 $0 $3,200 $3,200
1099 $0 $7,920 $7,920
1006 $0 $480 $480
998 $100 $0 $100
1096 $0 $7,680 $7,680
968 $1,600 $0 $1,600
842 $7,900 $0 $7,900
987 $650 $0 $650
901 $4,950 $0 $4,950
740 $13,000 $0 $13,000
919 $4,050 $0 $4,050
1003 $0 $240 $240
1005 $0 $400 $400
958 $2,100 $0 $2,100
923 $3,850 $0 $3,850
980 $1,000 $0 $1,000
1069 $0 $5,520 $5,520
978 $1,100 $0 $1,100
920 $4,000 $0 $4,000
939 $3,050 $0 $3,050
899 $5,050 $0 $5,050
933 $3,350 $0 $3,350
811 $9,450 $0 $9,450
1112 $0 $8,960 $8,960
945 $2,750 $0 $2,750
1103 $0 $8,240 $8,240
1022 $0 $1,760 $1,760
950 $2,500 $0 $2,500
1037 $0 $2,960 $2,960
962 $1,900 $0 $1,900
1045 $0 $3,600 $3,600
943 $2,850 $0 $2,850
1031 $0 $2,480 $2,480
919 $4,050 $0 $4,050
1005 $0 $400 $400
1010 $0 $800 $800
904 $4,800 $0 $4,800
1033 $0 $2,640 $2,640
1039 $0 $3,120 $3,120
1033 $0 $2,640 $2,640
956 $2,200 $0 $2,200
1111 $0 $8,880 $8,880
956 $2,200 $0 $2,200
1040 $0 $3,200 $3,200
933 $3,350 $0 $3,350
1048 $0 $3,840 $3,840
938 $3,100 $0 $3,100
970 $1,500 $0 $1,500
997 $150 $0 $150
1112 $0 $8,960 $8,960
985 $750 $0 $750
986 $700 $0 $700
989 $550 $0 $550
990 $500 $0 $500
964 $1,800 $0 $1,800
896 $5,200 $0 $5,200
1060 $0 $4,800 $4,800
1028 $0 $2,240 $2,240
1079 $0 $6,320 $6,320
1067 $0 $5,360 $5,360
958 $2,100 $0 $2,100
1045 $0 $3,600 $3,600
998 $100 $0 $100
966 $1,700 $0 $1,700
1043 $0 $3,440 $3,440
1007 $0 $560 $560
1058 $0 $4,640 $4,640
1136 $0 $10,880 $10,880
868 $6,600 $0 $6,600
1015 $0 $1,200 $1,200
947 $2,650 $0 $2,650
 955 $2,250 $0 $2,250
986 $700 $0 $700
832 $8,400 $0 $8,400
1077 $0 $6,160 $6,160
1022 $0 $1,760 $1,760
1017 $0 $1,360 $1,360
1068 $0 $5,440 $5,440
1243 $0 $19,440 $19,440
988 $600 $0 $600
1013 $0 $1,040 $1,040
968 $1,600 $0 $1,600
935 $3,250 $0 $3,250
1032 $0 $2,560 $2,560
1057 $0 $4,560 $4,560
1005 $0 $400 $400
1062 $0 $4,960 $4,960
1062 $0 $4,960 $4,960
946 $2,700 $0 $2,700
980 $1,000 $0 $1,000
960 $2,000 $0 $2,000
1034 $0 $2,720 $2,720
1001 $0 $80 $80
863 $6,850 $0 $6,850
995 $250 $0 $250
1047 $0 $3,760 $3,760
997 $150 $0 $150
930 $3,500 $0 $3,500
1023 $0 $1,840 $1,840
956 $2,200 $0 $2,200
879 $6,050 $0 $6,050
1007 $0 $560 $560
1035 $0 $2,800 $2,800
964 $1,800 $0 $1,800
959 $2,050 $0 $2,050
1165 $0 $13,200 $13,200
1165 $0 $13,200 $13,200
948 $2,600 $0 $2,600
911 $4,450 $0 $4,450
992 $400 $0 $400
966 $1,700 $0 $1,700
1072 $0 $5,760 $5,760
 987 $650 $0 $650
1021 $0 $1,680 $1,680
990 $500 $0 $500
998 $100 $0 $100
1008 $0 $640 $640
1042 $0 $3,360 $3,360
925 $3,750 $0 $3,750
956 $2,200 $0 $2,200
1060 $0 $4,800 $4,800
955 $2,250 $0 $2,250
897 $5,150 $0 $5,150
990 $500 $0 $500
1005 $0 $400 $400
1099 $0 $7,920 $7,920
1045 $0 $3,600 $3,600
1123 $0 $9,840 $9,840
1061 $0 $4,880 $4,880
1044 $0 $3,520 $3,520
1058 $0 $4,640 $4,640
1082 $0 $6,560 $6,560
990 $500 $0 $500
992 $400 $0 $400
1074 $0 $5,920 $5,920
930 $3,500 $0 $3,500
946 $2,700 $0 $2,700
933 $3,350 $0 $3,350
1040 $0 $3,200 $3,200
925 $3,750 $0 $3,750
998 $100 $0 $100
1060 $0 $4,800 $4,800
1008 $0 $640 $640
914 $4,300 $0 $4,300
921 $3,950 $0 $3,950
1120 $0 $9,600 $9,600
1069 $0 $5,520 $5,520
1039 $0 $3,120 $3,120
924 $3,800 $0 $3,800
998 $100 $0 $100
1029 $0 $2,320 $2,320
1065 $0 $5,200 $5,200
1146 $0 $11,680 $11,680
 981 $950 $0 $950
858 $7,100 $0 $7,100
930 $3,500 $0 $3,500
1092 $0 $7,360 $7,360
966 $1,700 $0 $1,700
905 $4,750 $0 $4,750
991 $450 $0 $450
1065 $0 $5,200 $5,200
994 $300 $0 $300
1005 $0 $400 $400
980 $1,000 $0 $1,000
950 $2,500 $0 $2,500
1019 $0 $1,520 $1,520
938 $3,100 $0 $3,100
935 $3,250 $0 $3,250
950 $2,500 $0 $2,500
986 $700 $0 $700
998 $100 $0 $100
1123 $0 $9,840 $9,840
958 $2,100 $0 $2,100
1116 $0 $9,280 $9,280
942 $2,900 $0 $2,900
856 $7,200 $0 $7,200
1057 $0 $4,560 $4,560
1010 $0 $800 $800
1002 $0 $160 $160
1021 $0 $1,680 $1,680
991 $450 $0 $450
898 $5,100 $0 $5,100
1014 $0 $1,120 $1,120
1029 $0 $2,320 $2,320
935 $3,250 $0 $3,250
1040 $0 $3,200 $3,200
868 $6,600 $0 $6,600
1011 $0 $880 $880
1013 $0 $1,040 $1,040
947 $2,650 $0 $2,650
1066 $0 $5,280 $5,280
870 $6,500 $0 $6,500
1121 $0 $9,680 $9,680
928 $3,600 $0 $3,600
1013 $0 $1,040 $1,040
968 $1,600 $0 $1,600
1086 $0 $6,880 $6,880
1017 $0 $1,360 $1,360
911 $4,450 $0 $4,450
1162 $0 $12,960 $12,960
985 $750 $0 $750
958 $2,100 $0 $2,100
1077 $0 $6,160 $6,160
1045 $0 $3,600 $3,600
1136 $0 $10,880 $10,880
1004 $0 $320 $320
1108 $0 $8,640 $8,640
1035 $0 $2,800 $2,800
1062 $0 $4,960 $4,960
1037 $0 $2,960 $2,960
991 $450 $0 $450
1070 $0 $5,600 $5,600
1020 $0 $1,600 $1,600
1021 $0 $1,680 $1,680
999 $50 $0 $50
1041 $0 $3,280 $3,280
1004 $0 $320 $320
1073 $0 $5,840 $5,840
981 $950 $0 $950
1086 $0 $6,880 $6,880
933 $3,350 $0 $3,350
1128 $0 $10,240 $10,240
1032 $0 $2,560 $2,560
939 $3,050 $0 $3,050
1079 $0 $6,320 $6,320
904 $4,800 $0 $4,800
949 $2,550 $0 $2,550
998 $100 $0 $100
1199 $0 $15,920 $15,920
988 $600 $0 $600
983 $850 $0 $850
994 $300 $0 $300
991 $450 $0 $450
970 $1,500 $0 $1,500
972 $1,400 $0 $1,400
1041 $0 $3,280 $3,280
1018 $0 $1,440 $1,440
913 $4,350 $0 $4,350
847 $7,650 $0 $7,650
1009 $0 $720 $720
1065 $0 $5,200 $5,200
805 $9,750 $0 $9,750
988 $600 $0 $600
1066 $0 $5,280 $5,280
1018 $0 $1,440 $1,440
1017 $0 $1,360 $1,360
972 $1,400 $0 $1,400
953 $2,350 $0 $2,350
1133 $0 $10,640 $10,640
1074 $0 $5,920 $5,920
993 $350 $0 $350
947 $2,650 $0 $2,650
1054 $0 $4,320 $4,320
927 $3,650 $0 $3,650
998 $100 $0 $100
866 $6,700 $0 $6,700
1108 $0 $8,640 $8,640
897 $5,150 $0 $5,150
932 $3,400 $0 $3,400
958 $2,100 $0 $2,100
1123 $0 $9,840 $9,840
919 $4,050 $0 $4,050
1019 $0 $1,520 $1,520
940 $3,000 $0 $3,000
1004 $0 $320 $320
1004 $0 $320 $320
967 $1,650 $0 $1,650
938 $3,100 $0 $3,100
966 $1,700 $0 $1,700
891 $5,450 $0 $5,450
1123 $0 $9,840 $9,840
940 $3,000 $0 $3,000
955 $2,250 $0 $2,250
1000 $0 $0 $0
1085 $0 $6,800 $6,800
1017 $0 $1,360 $1,360
 989 $550 $0 $550
1110 $0 $8,800 $8,800
912 $4,400 $0 $4,400
1095 $0 $7,600 $7,600
1112 $0 $8,960 $8,960
991 $450 $0 $450
1118 $0 $9,440 $9,440
1025 $0 $2,000 $2,000
994 $300 $0 $300
1028 $0 $2,240 $2,240
932 $3,400 $0 $3,400
1009 $0 $720 $720
1079 $0 $6,320 $6,320
900 $5,000 $0 $5,000
1026 $0 $2,080 $2,080
999 $50 $0 $50
1109 $0 $8,720 $8,720
864 $6,800 $0 $6,800
1014 $0 $1,120 $1,120
1096 $0 $7,680 $7,680
940 $3,000 $0 $3,000
1004 $0 $320 $320
1048 $0 $3,840 $3,840
1098 $0 $7,840 $7,840
902 $4,900 $0 $4,900
896 $5,200 $0 $5,200
1011 $0 $880 $880
910 $4,500 $0 $4,500
931 $3,450 $0 $3,450
988 $600 $0 $600
963 $1,850 $0 $1,850
968 $1,600 $0 $1,600
1013 $0 $1,040 $1,040
1013 $0 $1,040 $1,040
1016 $0 $1,280 $1,280
1098 $0 $7,840 $7,840
1190 $0 $15,200 $15,200
994 $300 $0 $300
901 $4,950 $0 $4,950
872 $6,400 $0 $6,400
960 $2,000 $0 $2,000
1064 $0 $5,120 $5,120
1113 $0 $9,040 $9,040
934 $3,300 $0 $3,300
994 $300 $0 $300
1076 $0 $6,080 $6,080
876 $6,200 $0 $6,200
887 $5,650 $0 $5,650
941 $2,950 $0 $2,950
1100 $0 $8,000 $8,000
1017 $0 $1,360 $1,360
950 $2,500 $0 $2,500
979 $1,050 $0 $1,050
1040 $0 $3,200 $3,200
996 $200 $0 $200
1096 $0 $7,680 $7,680
928 $3,600 $0 $3,600
1089 $0 $7,120 $7,120
1058 $0 $4,640 $4,640
1135 $0 $10,800 $10,800
999 $50 $0 $50
1083 $0 $6,640 $6,640
1012 $0 $960 $960
1018 $0 $1,440 $1,440
928 $3,600 $0 $3,600
1037 $0 $2,960 $2,960
875 $6,250 $0 $6,250
955 $2,250 $0 $2,250
964 $1,800 $0 $1,800
973 $1,350 $0 $1,350
969 $1,550 $0 $1,550
1060 $0 $4,800 $4,800
1089 $0 $7,120 $7,120
1006 $0 $480 $480
983 $850 $0 $850
900 $5,000 $0 $5,000
1007 $0 $560 $560
1094 $0 $7,520 $7,520
1032 $0 $2,560 $2,560
1057 $0 $4,560 $4,560
1019 $0 $1,520 $1,520
962 $1,900 $0 $1,900
1217 $0 $17,360 $17,360
1050 $0 $4,000 $4,000
1084 $0 $6,720 $6,720
1112 $0 $8,960 $8,960
1105 $0 $8,400 $8,400
873 $6,350 $0 $6,350
1051 $0 $4,080 $4,080
862 $6,900 $0 $6,900
866 $6,700 $0 $6,700
819 $9,050 $0 $9,050
861 $6,950 $0 $6,950
1027 $0 $2,160 $2,160
1025 $0 $2,000 $2,000
980 $1,000 $0 $1,000
1013 $0 $1,040 $1,040
980 $1,000 $0 $1,000
961 $1,950 $0 $1,950
950 $2,500 $0 $2,500
1007 $0 $560 $560
952 $2,400 $0 $2,400
1192 $0 $15,360 $15,360
1093 $0 $7,440 $7,440
1117 $0 $9,360 $9,360
971 $1,450 $0 $1,450
950 $2,500 $0 $2,500
1080 $0 $6,400 $6,400
898 $5,100 $0 $5,100
1027 $0 $2,160 $2,160
1007 $0 $560 $560
991 $450 $0 $450
1038 $0 $3,040 $3,040
920 $4,000 $0 $4,000
1045 $0 $3,600 $3,600
1073 $0 $5,840 $5,840
1064 $0 $5,120 $5,120
1008 $0 $640 $640
984 $800 $0 $800
1009 $0 $720 $720
1001 $0 $80 $80
918 $4,100 $0 $4,100
1037 $0 $2,960 $2,960
 967 $1,650 $0 $1,650
1084 $0 $6,720 $6,720
1044 $0 $3,520 $3,520
998 $100 $0 $100
935 $3,250 $0 $3,250
972 $1,400 $0 $1,400
989 $550 $0 $550
805 $9,750 $0 $9,750
1019 $0 $1,520 $1,520
1126 $0 $10,080 $10,080
942 $2,900 $0 $2,900
1179 $0 $14,320 $14,320
963 $1,850 $0 $1,850
971 $1,450 $0 $1,450
991 $450 $0 $450
943 $2,850 $0 $2,850
993 $350 $0 $350
981 $950 $0 $950
1146 $0 $11,680 $11,680
1018 $0 $1,440 $1,440
935 $3,250 $0 $3,250
1031 $0 $2,480 $2,480
1081 $0 $6,480 $6,480
1143 $0 $11,440 $11,440
984 $800 $0 $800
847 $7,650 $0 $7,650
1187 $0 $14,960 $14,960
936 $3,200 $0 $3,200
867 $6,650 $0 $6,650
1034 $0 $2,720 $2,720
958 $2,100 $0 $2,100
946 $2,700 $0 $2,700
1133 $0 $10,640 $10,640
916 $4,200 $0 $4,200
987 $650 $0 $650
1017 $0 $1,360 $1,360
1058 $0 $4,640 $4,640
1103 $0 $8,240 $8,240
1050 $0 $4,000 $4,000
969 $1,550 $0 $1,550
887 $5,650 $0 $5,650
1032 $0 $2,560 $2,560
1091 $0 $7,280 $7,280
969 $1,550 $0 $1,550
972 $1,400 $0 $1,400
888 $5,600 $0 $5,600
1015 $0 $1,200 $1,200
994 $300 $0 $300
930 $3,500 $0 $3,500
1035 $0 $2,800 $2,800
1014 $0 $1,120 $1,120
1084 $0 $6,720 $6,720
1119 $0 $9,520 $9,520
935 $3,250 $0 $3,250
1027 $0 $2,160 $2,160
985 $750 $0 $750
1103 $0 $8,240 $8,240
760 $12,000 $0 $12,000
1028 $0 $2,240 $2,240
983 $850 $0 $850
919 $4,050 $0 $4,050
1025 $0 $2,000 $2,000
891 $5,450 $0 $5,450
1116 $0 $9,280 $9,280
959 $2,050 $0 $2,050
1019 $0 $1,520 $1,520
914 $4,300 $0 $4,300
993 $350 $0 $350
974 $1,300 $0 $1,300
911 $4,450 $0 $4,450
989 $550 $0 $550
1002 $0 $160 $160
957 $2,150 $0 $2,150
1032 $0 $2,560 $2,560
949 $2,550 $0 $2,550
1092 $0 $7,360 $7,360
1058 $0 $4,640 $4,640
1056 $0 $4,480 $4,480
1010 $0 $800 $800
797 $10,150 $0 $10,150
1047 $0 $3,760 $3,760
1049 $0 $3,920 $3,920
1031 $0 $2,480 $2,480
966 $1,700 $0 $1,700
922 $3,900 $0 $3,900
1023 $0 $1,840 $1,840
1000 $0 $0 $0
1128 $0 $10,240 $10,240
1080 $0 $6,400 $6,400
1188 $0 $15,040 $15,040
1053 $0 $4,240 $4,240
1036 $0 $2,880 $2,880
1102 $0 $8,160 $8,160
818 $9,100 $0 $9,100
1087 $0 $6,960 $6,960
1049 $0 $3,920 $3,920
1053 $0 $4,240 $4,240
1086 $0 $6,880 $6,880
1035 $0 $2,800 $2,800
1036 $0 $2,880 $2,880
1109 $0 $8,720 $8,720
1013 $0 $1,040 $1,040
957 $2,150 $0 $2,150
908 $4,600 $0 $4,600
905 $4,750 $0 $4,750
875 $6,250 $0 $6,250
954 $2,300 $0 $2,300
982 $900 $0 $900
950 $2,500 $0 $2,500
1037 $0 $2,960 $2,960
1097 $0 $7,760 $7,760
1032 $0 $2,560 $2,560
978 $1,100 $0 $1,100
1053 $0 $4,240 $4,240
1070 $0 $5,600 $5,600
1102 $0 $8,160 $8,160
967 $1,650 $0 $1,650
928 $3,600 $0 $3,600
1091 $0 $7,280 $7,280
859 $7,050 $0 $7,050
1051 $0 $4,080 $4,080
1133 $0 $10,640 $10,640
888 $5,600 $0 $5,600
 874 $6,300 $0 $6,300
992 $400 $0 $400
1075 $0 $6,000 $6,000
1072 $0 $5,760 $5,760
974 $1,300 $0 $1,300
790 $10,500 $0 $10,500
870 $6,500 $0 $6,500
1006 $0 $480 $480
1014 $0 $1,120 $1,120
1121 $0 $9,680 $9,680
1154 $0 $12,320 $12,320
1015 $0 $1,200 $1,200
863 $6,850 $0 $6,850
1107 $0 $8,560 $8,560
912 $4,400 $0 $4,400
1072 $0 $5,760 $5,760
1089 $0 $7,120 $7,120
1090 $0 $7,200 $7,200
1007 $0 $560 $560
1092 $0 $7,360 $7,360
1048 $0 $3,840 $3,840
881 $5,950 $0 $5,950
1042 $0 $3,360 $3,360
1074 $0 $5,920 $5,920
960 $2,000 $0 $2,000
905 $4,750 $0 $4,750
978 $1,100 $0 $1,100
944 $2,800 $0 $2,800
875 $6,250 $0 $6,250
1055 $0 $4,400 $4,400
1071 $0 $5,680 $5,680
1160 $0 $12,800 $12,800
981 $950 $0 $950
1005 $0 $400 $400
891 $5,450 $0 $5,450
1101 $0 $8,080 $8,080
1096 $0 $7,680 $7,680
865 $6,750 $0 $6,750
964 $1,800 $0 $1,800
962 $1,900 $0 $1,900
984 $800 $0 $800
 858 $7,100 $0 $7,100
936 $3,200 $0 $3,200
987 $650 $0 $650
914 $4,300 $0 $4,300
1065 $0 $5,200 $5,200
997 $150 $0 $150
1113 $0 $9,040 $9,040
853 $7,350 $0 $7,350
1019 $0 $1,520 $1,520
950 $2,500 $0 $2,500
1047 $0 $3,760 $3,760
1166 $0 $13,280 $13,280
1104 $0 $8,320 $8,320
1035 $0 $2,800 $2,800
931 $3,450 $0 $3,450
988 $600 $0 $600
1037 $0 $2,960 $2,960
938 $3,100 $0 $3,100
985 $750 $0 $750
980 $1,000 $0 $1,000
1095 $0 $7,600 $7,600
977 $1,150 $0 $1,150
971 $1,450 $0 $1,450
1059 $0 $4,720 $4,720
802 $9,900 $0 $9,900
1008 $0 $640 $640
1003 $0 $240 $240
947 $2,650 $0 $2,650
948 $2,600 $0 $2,600
1068 $0 $5,440 $5,440
856 $7,200 $0 $7,200
1034 $0 $2,720 $2,720
1034 $0 $2,720 $2,720
1160 $0 $12,800 $12,800
1024 $0 $1,920 $1,920
991 $450 $0 $450
974 $1,300 $0 $1,300
957 $2,150 $0 $2,150
1005 $0 $400 $400
959 $2,050 $0 $2,050
1046 $0 $3,680 $3,680
1129 $0 $10,320 $10,320
905 $4,750 $0 $4,750
1011 $0 $880 $880
1007 $0 $560 $560
1170 $0 $13,600 $13,600
954 $2,300 $0 $2,300
941 $2,950 $0 $2,950
1137 $0 $10,960 $10,960
1013 $0 $1,040 $1,040
1031 $0 $2,480 $2,480
1112 $0 $8,960 $8,960
1051 $0 $4,080 $4,080
1064 $0 $5,120 $5,120
1163 $0 $13,040 $13,040
985 $750 $0 $750
1001 $0 $80 $80
1077 $0 $6,160 $6,160
1070 $0 $5,600 $5,600
1116 $0 $9,280 $9,280
1029 $0 $2,320 $2,320
940 $3,000 $0 $3,000
1112 $0 $8,960 $8,960
843 $7,850 $0 $7,850
934 $3,300 $0 $3,300
1052 $0 $4,160 $4,160
1026 $0 $2,080 $2,080
938 $3,100 $0 $3,100
1028 $0 $2,240 $2,240
979 $1,050 $0 $1,050
965 $1,750 $0 $1,750
975 $1,250 $0 $1,250
904 $4,800 $0 $4,800
1016 $0 $1,280 $1,280
1026 $0 $2,080 $2,080
1100 $0 $8,000 $8,000
947 $2,650 $0 $2,650
930 $3,500 $0 $3,500
975 $1,250 $0 $1,250
1082 $0 $6,560 $6,560
980 $1,000 $0 $1,000
1003 $0 $240 $240
1157 $0 $12,560 $12,560
1134 $0 $10,720 $10,720
1084 $0 $6,720 $6,720
911 $4,450 $0 $4,450
923 $3,850 $0 $3,850
951 $2,450 $0 $2,450
977 $1,150 $0 $1,150
956 $2,200 $0 $2,200
1075 $0 $6,000 $6,000
1027 $0 $2,160 $2,160
956 $2,200 $0 $2,200
973 $1,350 $0 $1,350
920 $4,000 $0 $4,000
989 $550 $0 $550
1061 $0 $4,880 $4,880
1127 $0 $10,160 $10,160
979 $1,050 $0 $1,050
1039 $0 $3,120 $3,120
1037 $0 $2,960 $2,960
1088 $0 $7,040 $7,040
1006 $0 $480 $480
844 $7,800 $0 $7,800
846 $7,700 $0 $7,700
1129 $0 $10,320 $10,320
1084 $0 $6,720 $6,720
947 $2,650 $0 $2,650
971 $1,450 $0 $1,450
945 $2,750 $0 $2,750
898 $5,100 $0 $5,100
975 $1,250 $0 $1,250
956 $2,200 $0 $2,200
1057 $0 $4,560 $4,560
1008 $0 $640 $640
1034 $0 $2,720 $2,720
915 $4,250 $0 $4,250
947 $2,650 $0 $2,650
1004 $0 $320 $320
988 $600 $0 $600
867 $6,650 $0 $6,650
929 $3,550 $0 $3,550
1017 $0 $1,360 $1,360
1024 $0 $1,920 $1,920
1026 $0 $2,080 $2,080
1085 $0 $6,800 $6,800
1043 $0 $3,440 $3,440
1162 $0 $12,960 $12,960
1093 $0 $7,440 $7,440
1074 $0 $5,920 $5,920
938 $3,100 $0 $3,100
916 $4,200 $0 $4,200
992 $400 $0 $400
1004 $0 $320 $320
1042 $0 $3,360 $3,360
968 $1,600 $0 $1,600
1005 $0 $400 $400
852 $7,400 $0 $7,400
1064 $0 $5,120 $5,120
968 $1,600 $0 $1,600
983 $850 $0 $850
1115 $0 $9,200 $9,200
1193 $0 $15,440 $15,440
1025 $0 $2,000 $2,000
1101 $0 $8,080 $8,080
1010 $0 $800 $800
1054 $0 $4,320 $4,320
1026 $0 $2,080 $2,080
1042 $0 $3,360 $3,360
929 $3,550 $0 $3,550
945 $2,750 $0 $2,750
1032 $0 $2,560 $2,560
843 $7,850 $0 $7,850
960 $2,000 $0 $2,000
1058 $0 $4,640 $4,640
1128 $0 $10,240 $10,240
946 $2,700 $0 $2,700
905 $4,750 $0 $4,750
993 $350 $0 $350
960 $2,000 $0 $2,000
923 $3,850 $0 $3,850
1035 $0 $2,800 $2,800
913 $4,350 $0 $4,350
1076 $0 $6,080 $6,080
 902 $4,900 $0 $4,900
1095 $0 $7,600 $7,600
1033 $0 $2,640 $2,640
1085 $0 $6,800 $6,800
1007 $0 $560 $560
1045 $0 $3,600 $3,600
993 $350 $0 $350
972 $1,400 $0 $1,400
987 $650 $0 $650
964 $1,800 $0 $1,800
1152 $0 $12,160 $12,160
1049 $0 $3,920 $3,920
963 $1,850 $0 $1,850
1029 $0 $2,320 $2,320
1102 $0 $8,160 $8,160
1134 $0 $10,720 $10,720
1039 $0 $3,120 $3,120
1074 $0 $5,920 $5,920
945 $2,750 $0 $2,750
985 $750 $0 $750
846 $7,700 $0 $7,700
923 $3,850 $0 $3,850
1067 $0 $5,360 $5,360
1047 $0 $3,760 $3,760
940 $3,000 $0 $3,000
1065 $0 $5,200 $5,200
904 $4,800 $0 $4,800
974 $1,300 $0 $1,300
1064 $0 $5,120 $5,120
1028 $0 $2,240 $2,240
1027 $0 $2,160 $2,160
1069 $0 $5,520 $5,520
1053 $0 $4,240 $4,240
996 $200 $0 $200
1019 $0 $1,520 $1,520
1173 $0 $13,840 $13,840
974 $1,300 $0 $1,300
835 $8,250 $0 $8,250
1013 $0 $1,040 $1,040
955 $2,250 $0 $2,250
897 $5,150 $0 $5,150
1046 $0 $3,680 $3,680
962 $1,900 $0 $1,900
861 $6,950 $0 $6,950
887 $5,650 $0 $5,650
824 $8,800 $0 $8,800
914 $4,300 $0 $4,300
886 $5,700 $0 $5,700
983 $850 $0 $850
984 $800 $0 $800
1054 $0 $4,320 $4,320
1013 $0 $1,040 $1,040
1092 $0 $7,360 $7,360
1030 $0 $2,400 $2,400
1155 $0 $12,400 $12,400
930 $3,500 $0 $3,500
1076 $0 $6,080 $6,080
986 $700 $0 $700
985 $750 $0 $750
953 $2,350 $0 $2,350
912 $4,400 $0 $4,400
1081 $0 $6,480 $6,480
997 $150 $0 $150
1098 $0 $7,840 $7,840
1101 $0 $8,080 $8,080
1052 $0 $4,160 $4,160
984 $800 $0 $800
1069 $0 $5,520 $5,520
944 $2,800 $0 $2,800
1019 $0 $1,520 $1,520
955 $2,250 $0 $2,250
1059 $0 $4,720 $4,720
990 $500 $0 $500
849 $7,550 $0 $7,550
963 $1,850 $0 $1,850
1028 $0 $2,240 $2,240
866 $6,700 $0 $6,700
1020 $0 $1,600 $1,600
969 $1,550 $0 $1,550
1036 $0 $2,880 $2,880
905 $4,750 $0 $4,750
1020 $0 $1,600 $1,600
1030 $0 $2,400 $2,400
961 $1,950 $0 $1,950
936 $3,200 $0 $3,200
1109 $0 $8,720 $8,720
1019 $0 $1,520 $1,520
1002 $0 $160 $160
1097 $0 $7,760 $7,760
1034 $0 $2,720 $2,720
1047 $0 $3,760 $3,760
1022 $0 $1,760 $1,760
855 $7,250 $0 $7,250
945 $2,750 $0 $2,750
1046 $0 $3,680 $3,680
1017 $0 $1,360 $1,360
1002 $0 $160 $160
999 $50 $0 $50
951 $2,450 $0 $2,450
986 $700 $0 $700
975 $1,250 $0 $1,250
963 $1,850 $0 $1,850
1119 $0 $9,520 $9,520
884 $5,800 $0 $5,800
1058 $0 $4,640 $4,640
1088 $0 $7,040 $7,040
907 $4,650 $0 $4,650
978 $1,100 $0 $1,100
965 $1,750 $0 $1,750
932 $3,400 $0 $3,400
1006 $0 $480 $480
961 $1,950 $0 $1,950
936 $3,200 $0 $3,200
985 $750 $0 $750
927 $3,650 $0 $3,650
834 $8,300 $0 $8,300
989 $550 $0 $550
1097 $0 $7,760 $7,760
1000 $0 $0 $0
1023 $0 $1,840 $1,840
1122 $0 $9,760 $9,760
934 $3,300 $0 $3,300
1060 $0 $4,800 $4,800
1005 $0 $400 $400
1012 $0 $960 $960
978 $1,100 $0 $1,100
976 $1,200 $0 $1,200
1018 $0 $1,440 $1,440
945 $2,750 $0 $2,750
938 $3,100 $0 $3,100
1020 $0 $1,600 $1,600
1018 $0 $1,440 $1,440
986 $700 $0 $700
888 $5,600 $0 $5,600
1051 $0 $4,080 $4,080
967 $1,650 $0 $1,650
933 $3,350 $0 $3,350
1006 $0 $480 $480
992 $400 $0 $400
968 $1,600 $0 $1,600
1131 $0 $10,480 $10,480
893 $5,350 $0 $5,350
1035 $0 $2,800 $2,800
963 $1,850 $0 $1,850
1070 $0 $5,600 $5,600
835 $8,250 $0 $8,250
895 $5,250 $0 $5,250
1111 $0 $8,880 $8,880
1150 $0 $12,000 $12,000
1198 $0 $15,840 $15,840
1054 $0 $4,320 $4,320
All answers here are based on the simulation to the left

ted annual costs

$1,440
$2,515
$3,955

$150
$12,566

cc ):): The
The most
most striking
striking observation
observation isis the
the potential
potential
bility in
bility in total
total cost.
cost. ItIt could
could easily
easily be
be asas low
low as
as aa
le hundred dollars
e hundred dollars or
or more
more than
than $12,000.
$12,000. However,
However, the
the
total cost
total cost (cell
(cell G16)
G16) isis pretty
pretty stable,
stable, somewhere
somewhere
nd $3800 to
d $3800 to $3900.
$3900.