Consider the Profit/Loss problem presented in problem 3. a. Use Goal Seek to determine the access price
Question:
Consider the Profit/Loss problem presented in
problem 3.
a. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,500 copies.
b. Consider the following scenarios:
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?
Problem 3
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 $6 per book. The publisher plans to sell single-user access to the book for $46.
Step by Step Answer:
Business Analytics
ISBN: 9780357902219
5th Edition
Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann