Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost...

70.2K

Verified Solution

Question

Statistics

Eastman Publishing Company is considering publishing anelectronic textbook about spreadsheet applications for business.The fixed cost of manuscript preparation, textbook design, andweb-site construction is estimated to be $160,000. Variableprocessing costs are estimated to be $6 per book. The publisherplans to sell single-user access to the book for $46.

a.) Build a spreadsheet model tocalculate the profit/loss for a given demand. What profit can beanticipated with a demand of 3500 copies?

b.) Use a data table to vary demandfrom 1000 to 6000 in increments of 200 to assess the sensitivity ofprofit to demand.

c.) Use Goal Seek to determine theaccess price per copy that the publisher must charge to break evenwith a demand of 3500 copies.

Answer & Explanation Solved by verified expert
3.9 Ratings (455 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students