The current spreadsheet model essentially finds the expected profit in several steps. It first…

The current spreadsheet model essentially finds the expected profit in several steps. It first finds the profit in cell B19 for a fixed value of demand. Then it uses a data table to find the profit for each of several demands, and finally it uses SUMPRODUCT to find the expected profit. Modify the model so that expected profit is found directly, without a data table. To do this, change row 11 so that instead of a single demand, there is a list of possible demands, those currently in row 34. Then insert a new row below row 11 that lists the probabilities of these demands. Next, in the rows below the Profit Model label, calculate the units sold, revenue, cost, and profit for each demand. For example, the quantities in column C will be for the second possible demand. Finally, use SUMPRODUCT to calculate expected profit below the Profit row.