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Eastman fublahing Company is considering publishing an electronic teatbook about spreddhect applicadions for buniness. The fixed cost of manuscript preperation, textoook desipn, and. web-site constructionis

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Eastman fublahing Company is considering publishing an electronic teatbook about spreddhect applicadions for buniness. The fixed cost of manuscript preperation, textoook desipn, and. web-site constructionis estimated to be $160,000. Varsable processing costs are estimated to be s6 per book. The publisher plans to sell single-user access to the beck for st6? (a) Bulld a soreadsheet model in Evcel to caiculate the profithoss for a given demand. What profic can be anticipated with a demand of 3,500 copies? For subtractive or negative numbers use a minus sign. (3) Nivaghin Nenu tabie to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where preft goes from a negabie to a positive vabue, that is, beeskeven is where total revenve = total cost yielding o protic of rero. In which interval of demand dees breakeven occur? (i) Breakeven appears in the interval of 3,600 to 3,800 coples. (ii) Breokeven appears in the interval of 4,000 to 4,200 ccpies. (iii) Breakeven sopears in the interval of 4,200 to 4,400 copies. (iv) Breakeven appears in the interval of 4,400 to 4,600 copios: (c) Use coal Seek to determine the access price per cesy that the pubisher must charge to break even wath a demand of 3,500 copies. If required, reund your ans aer to two decinu/ places. (d) Consider the following scenarios: For each of these scenarios, the fixed cost remains 5160,000 , the Scenario Manager to gentrate a summary report that gives the groft for each of thete kenarios. Which scenario yields the highest profic? Which scenario yelds the lowest profic? for swttractive or negative numbers usi a minus wign. yields the highest profit of 1 Yeids the lowest proft of 5

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