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.
