Question
Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction
Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction is estimated to be $155,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $47 each.
(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 3,200 copies? |
For subtractive or negative numbers use a minus sign. | |
$ _________________ | |
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(b) | Use Goal Seek to answer the following question. With a demand of 3,200 copies, what is the access price per copy that the publisher must charge to break even? |
If required, round your answers to two decimal places. | |
$ _________________ |
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