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Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for businesg. The fixed cost of manuscript preparation, textbook design, and web-site construction

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Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for businesg. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $170,000. Variable processino costs are estimated to be 55 per book. The publisher plans to sell single-user access to the book for 545 . (a) Build a spreadsheet model in Excel to calculate the profic/loss for a oiven demand. What profit can be anticipated with a demand of 3,700 coples? For subtractive or negative numbers use a minus sign. 4. (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand: Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Areakeven appears in the interval of 3,800 to 4,000 copies. (ii) Breakeven appears in the interval of 4,200 to 4,400 copies. (iii) Breakeven appears in the interval of 4,400 to 4,600 copies. (iv) Breakeven appears in the interval of 4,600 to 4,800 coples. (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,700 copies, If required, round your answer to two decimal places. (d) Consider the following scenarios: (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,700 copies. If required, round your answer to two decimal places. (d) Consider the following scenarios: For each of these scenarios, the fixed cost remains $170,000. Use Scenario Manager to generate a summary report that gives the profit for each of these scenarios. Which scenario vields the highest profit? Which scenario vields the lowest profit? For subtractive or negative numbers use a minus sign. yields the highest profit of $ vields the lowest profit of s

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