Question

Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $155,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $47. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 - 40 $p$, where $p$ is the price of the e-book. (a) Build a spreadsheet model to calculate the profit/loss for a given demand. What is the demand? 3718 (b) Use Goal Seek to calculate the price that results in breakeven. If required, round your answer to two decimal places. (c) Use a data table that varies price from $50 to $400 in increments of $25 to find the price that maximizes profit. If Eastman sells the single-user access to the electronic book at a price of , it will earn a maximum profit of 

          Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $155,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $47. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 - 40 \(p\), where \(p\) is the price of the e-book.
(a) Build a spreadsheet model to calculate the profit/loss for a given demand. What is the demand?
3718
(b) Use Goal Seek to calculate the price that results in breakeven. If required, round your answer to two decimal places.
(c) Use a data table that varies price from $50 to $400 in increments of $25 to find the price that maximizes profit.
If Eastman sells the single-user access to the electronic book at a price of \(\), it will earn a maximum profit of \(\)

Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be 155,000. Variable processing costs are estimated to be6 per book. The publisher plans to sell single-user access to the book for 47. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 - 40 p, where p is the price of the e-book.
(a) Build a spreadsheet model to calculate the profit/loss for a given demand. What is the demand?
3718
(b) Use Goal Seek to calculate the price that results in breakeven. If required, round your answer to two decimal places.
(c) Use a data table that varies price from50 to 400 in increments of25 to find the price that maximizes profit.
If Eastman sells the single-user access to the electronic book at a price of , it will earn a maximum profit of

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