**Eastman Publishing Company Profit Analysis**Eastman Publishing Company is evaluating the feasibility of publishing an electronic textbook focused on spreadsheet applications for business. The following analysis examines the potential profit or loss based on sales demand and pricing strategies.**Fixed and Variable Costs:**- **Fixed Costs:** The total fixed costs, which include manuscript preparation, textbook design, and website construction, amount to $170,000.- **Variable Costs:** These are estimated at $6 per book.**Pricing Strategy:**- The publisher aims to sell single-user access to the book at a price of $52 per copy.**Analysis Tasks:****(a) Profit/Loss Calculation for Specific Demand:**- **Objective:** Create an Excel spreadsheet to determine the profit or loss for a given demand.- **Example Calculation:** For a demand of 3,600 copies, the anticipated profit or loss is calculated as -$378,800.**(b) Breakeven Analysis Using a Data Table:**- **Objective:** Utilize a data table to analyze how changes in demand (from 1,000 to 6,000 copies in increments of 200) affect profit, identifying the breakeven point where total revenue equals total cost.- **Breakeven Point:** Occurs in the demand interval of 3,600 to 3,800 copies, as selected in option (ii).**(c) Access Price Determination Using Goal Seek:**- **Objective:** Use Excel's Goal Seek tool to find the access price per copy needed to break even at a demand of 3,600 copies. The price should be rounded to two decimal places.**(d) Scenario Analysis:**- The analysis includes varying scenarios with different variable costs: - **Scenario 1:** Variable cost at $6 - **Scenario 2:** Variable cost at $9 - **Scenario 3:** Variable cost at $7 - **Scenario 4:** Variable cost at $10 - **Scenario 5:** Variable cost at $11This structured analysis aids in assessing the financial feasibility and determining optimal pricing strategies for the textbook launch. **Educational Exercise on Breakeven Analysis and Profit Scenarios****Breakeven Analysis:***Question:* Determine the interval of demand where breakeven occurs, meaning the total revenue equals the total cost, yielding a profit of zero. Select the correct option.1. Breakeven appears in the interval of 3,200 to 3,400 copies.2. Breakeven appears in the interval of 3,600 to 3,800 copies. (Correct Option)3. Breakeven appears in the interval of 3,800 to 4,000 copies.4. Breakeven appears in the interval of 4,000 to 4,200 copies.**Using Goal Seek:***Task:* Use Goal Seek to calculate the access price per copy that the publisher must charge to break even with a demand of 3,600 copies. If required, round your answer to two decimal places.**Scenarios for Profit Analysis:**Given a fixed cost of $170,000, consider the following scenarios and determine which yields the highest and lowest profit. Use Scenario Manager for calculation.| Scenario | Variable Cost/Book | Access Price | Demand ||----------|--------------------|--------------|--------|| 1 | $6 | $52 | 1,500 || 2 | $9 | $42 | 2,200 || 3 | $7 | $48 | 5,000 || 4 | $10 | $45 | 5,500 || 5 | $11 | $50 | 1,000 |*Conclusions:*- **Highest Profit:** Scenario 3 yields the highest profit of $ ______. - **Lowest Profit:** Scenario 5 yields the lowest profit of $ ______.Please use a minus sign for negative profit values.

The following facts are providedFixed cost $170000Variable cost$ 5 per bookPrice$ 45Demand3700 copiesThe given facts are listed in the spreadsheet model depicted as below:Profit/Loss = Sales - Variable Cost - Fixed CostLoss = $22000The data table to varying demand from 1,000 to 6,000 in increments of 200 is provided below along with the computation of profit/loss for each level of demand:The profit/loss is varying from - $130000 to + $70000.Break even occurs when the profit/loss reaches zero.It is evident from the above table that profit/loss will be 0 when the demand is between 4200 and 4400. At 4200 demand there is a loss of 2000 and at 4400 demand there is a profit of 6000. Breakeven occurs where profit goes from a negative to a positive value.Option (ii) is correctThus, Breakeven appears in the interval of 4,200 to 4,400 copies.Select data menu-what if analysis -Goal seek and enter the values as below in the excel:By clicking OK, we will obtain the following result:If demand remains 3700, then to break even an access price of $50.95 has to be charged.The information provided is given below:Now let us create these scenarios using Scenario Manager.Select data menu-what if analysis -Scenario Manager and enter the values as below in the excel:Click on Add to add the scenarios as shown below:Click OK and enter the values which are changing under each scenario:Add all 5 scenarios one by one as shown below:Click on Summary to generate Summary Report and then click Show. We will get the following Summary Report:The Result Cells indicates the profit/loss under each scenario.Scenario 1 generates a Loss = - $62,000Scenario 2 generates a Loss = - $127,000Scenario 3 generates a Profit = $16,000Scenario 4 generates a Profit = $53,600Scenario 5 generates a Loss = - $38,000Scenario 4 yields the highest profit of $53,600Scenario 2 yields the lowest profit of -$127,000a) - $22,000 Loss can be anticipated with a demand of 3,700 copies.b) At 4200 demand there is a loss of 2000 and at 4400 demand there is a profit of 6000. Breakeven occurs where profit goes from a negative to a positive value.Option (ii) is correctThus, Breakeven appears in the interval of 4,200 to 4,400 copies.(iii) The access price per copy should be $50.95 that the publisher must charge to break even with a demand of 3,700 copies.(iv) Using Scenario Manager, it can be inferred:Scenario 4 yields the highest profit of $53,600Scenario 2 yields the lowest profit of -$127,000