What is the range of potential profits for Sanotronics LLC?

• A. From a loss of $1,000,000 to a profit of $2,780,000.
• B. From break-even to $710,000.
• C. From $0 to $1,000,000.
• D. From -$500,000 to $1,500,000.

Answer: (A)

In a Monte Carlo risk view, the range of potential profits is defined by the smallest and largest outcomes the model produces. For Sanotronics LLC, the simulation shows profits can go as low as a $1,000,000 loss and as high as a $2,780,000 gain. So the range is -$1,000,000 to $2,780,000. Other options miss either the negative side or the upper tail: they either exclude losses, or cap the upside too low, or both. This makes them inconsistent with the modeled outcomes.