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 $$170,000.$ Variable processing costs are estimated to be $$5$ per book. The publisher plans to sell single$-$user access to the book for $$45.$

$($a$)$ Build a spreadsheet model in Excel to calculate the profit$/$loss for a given demand. What profit can be anticipated with a demand of $3,700$ copies? For subtractive or negative numbers use a minus sign.

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$($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$)$ Breakeven 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 $4,800$ copies.

$($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.

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$($d$)$ Consider the following scenarios:

Scenario $1$ Scenario $2$ Scenario $3$ Scenario $4$ Scenario $5$

Variable Cost$/$Book $$5$ $$7$ $$11$ $$9$ $$10$

Access Price $$45$ $$50$ $$42$ $$52$ $$65$

Demand $2,7001,0006,0005,2002,400$

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 yields the highest profit? Which scenario yields the lowest profit? For subtractive or negative numbers use a minus sign.

yields the highest profit of $ $.$

yields the lowest profit of $ $.$