Question#2

2. [I1 Points] CAMMBA4 10.E.006. MY NOTES ASK YOUR TEACHER I ' PRACTICE ANOTHER Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business' The xed cost of manuscript preparation, textbook design, and web site construction is estimated to be $163,000. Variable processing costs are estimated to be $9 per book. The publisher plans to sell single-user access to the book for $45. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 5p, where p is the price of the e-book. (a) Construct an appropriate spreadsheet model for calculating the prot/loss at a given single-user acoess price taking into account the above demand function. What is the prot estimated by your model for the given costs and single user access prlce (ln dollars). $ (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest Dent.) $ (c) Use a data table that varies price from $50 to $400 in increments of $25 to nd the price (in dollars) that maximizes prot. $