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Create separate spreadsheets for each part of the question and name it as Q1a, Q1b etc. Submit only one-single Excel file and include all your
Create separate spreadsheets for each part of the question and name it as Q1a, Q1b etc. Submit only one-single Excel file and include all your answers in this excel (interpretations, conclusions etc. must be highlighted). 1. (15 pts) 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 $160,000. Variable processing costs are estimated to be S6 per book. The publisher plans to sell single-user access to the book for $46. a) Build a spreadsheet model to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,500 copies? b) Use a one-way data table to vary demand from 1,000 to 6,000 in increments of 500 to assess the sensitivity of profit to demand. c) Use a two-way data table to assess the sensitivity of profit to demand and selling price. i. Demand varies from 1,000 to 6,000 in increments of 500 (in column) ii. Selling price varies from $30 to $62 in increments of S4 b. Use Goal Seek to determine the access price per copy that the publisher must charge (find the selling price) to break-even with a demand of 2,500 copies? c. Consider the following scenarios: Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Variable Cost per Book $6 $9 $12 $10 $14 Access Price $52 $35 $46 $35 Demand 1,000 6,000 5,000 2,000 S46 2,500 For each of these scenarios, the fixed cost remains $160,000. Use Scenario Manager to generate a summary report that gives the profit for each of these scenarios. Which scenario yields the highest profit? Which scenario yields the lowest profit
Create separate spreadsheets for each part of the question and name it as Q1a, Q1b etc.
Submit only one-single Excel file and include all your answers in this excel (interpretations, conclusions etc. must be highlighted).
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