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Eattman Publishing Company is considering publishing an electronic textbook about spreadshect applications for business. The...

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Accounting

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Eattman Publishing Company is considering publishing an electronic textbook about spreadshect applications for business. The fixed cost of manuscript preparatian, textbook design, and web site construction is estimated to be $159,000. Variable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for 543. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The precictive model is demand =4,0006p, where p is the price of the e-book. (a) Construct an appropriate spreadsheet model for calculating the profitloss at a given single-user access price taking into account the above demand funciion. What is the profit estimated by your model for the given costs and single user access price (in dollars). (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) (c) Use a data table that varies price from $50 to $400 in increments of $25 to find the price (in doliars) that maximites profit

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