Inputs OLD New

Demand 50 Engineering Cost

cost $8,000 Software Cost
selling price $10,000 Manufacturing Cost
Old Valve Rating 522 Selling Price per unit
Total Selling Price

Profit
probability

Nathan Problem
535 555 575 595 615
Cut-off 535
new valve consider 1 (1-consider,0-abandon)
Software cost $160,000
Engineering Cost $80,000
Manufacturing Cost $10,500
Selling price $103,750
Total Cost $250,500

Profit ($146,750)
 $80,000 New Valve Rating 590
$160,000 Actual Rating 597
$10,500
$1,875
$103,750

($146,750)
0

635 655 675