1. Problem #2: Suppose a small business owner has total revenue (sales) of $993,000, and the
following partial income statement. a) Compute and report static economic profit (Total Rev. -
Exp. Costs Imp. Costs) Static economic profit Suppose "Legal Expenses" were not certain.
Rather, they were distributed uniformly with a minimum of $0 and a maximum of $90,000. Use
the Analysis ToolPak to run a 1,000 observation simulation where you simulate on legal
expenses using the above distribution. Use the same seed you used in problem #1. b) Compute
and report average economic profit.
b) Compute and report average economic profit. Average economic profit c) Compute the
percentage of sim. runs that result in a negative economic profit. % of runs with negative
economic profit d) Complete the frequency distribution below
d) Complete the frequency distribution below