Eastman Publishıng Company is considening publishing an electronic textbook about spreadsheet applications for business. The foxed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $150,000. Vanable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be antiopated with a demand of 3,400 copies? For subtractive or negative numbers use a minus sign. 7200 (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 3,000 to 3,200 copies. (i) Breakeven appears in the interval of 3,400 to 3,600 copies. () Breakeven appears in the interval of 3,600 to 3,800 copies. (iv) Breakeven appears in the interval of 3,800 to 4,000 copies. Option ()

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(c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. If required, round your answer to
two decimal places
51
(d) Consider the following scenarios:
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Scenario 5
Variable
$7
$10
$11
$8
$13
Cost/Book
Access Price
$49
$40
$45
$50
$55
Demand
3,000
2,000
4,500
6,000
1,000
For each of these scenarios, the fixed cost remains $150,000. Use Scenano Manager to generate a summary report that gives the profit for each of these scenanos
Which scenario yields the highest profit? Which scenanio yields the lowest profit? For subtractive or negative numbers use a minus sign.
Scenario 2
yields the highest profit of s
Scenario 4
yields the lowest profit of $
Transcribed Image Text:(c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. If required, round your answer to two decimal places 51 (d) Consider the following scenarios: Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Variable $7 $10 $11 $8 $13 Cost/Book Access Price $49 $40 $45 $50 $55 Demand 3,000 2,000 4,500 6,000 1,000 For each of these scenarios, the fixed cost remains $150,000. Use Scenano Manager to generate a summary report that gives the profit for each of these scenanos Which scenario yields the highest profit? Which scenanio yields the lowest profit? For subtractive or negative numbers use a minus sign. Scenario 2 yields the highest profit of s Scenario 4 yields the lowest profit of $
Eastman Publishıng Company is considering publishing an electronic textbook about spreadsheet applications for business. The fxed cost of manuscript preparation,
textbook design, and web-site construction is estimated to be $150,000. Vanable processing costs are estimated to be $7 per book. The publisher plans to sell single-user
access to the book for $49.
(a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be antiopated with a demand of 3,400 copies? For subtractive or
negative numbers use a minus sign.
7200
(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 3,000 to 3,200 copies.
(i) Breakeven appears in the interval of 3,400 to 3,600 copies.
() Breakeven appears in the interval of 3,600 to 3,800 copies.
(iv) Breakeven appears in the interval of 3,800 to 4,000 copies.
Option (ii)
(c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. if required, round your answer to
two deomal places.
51
Transcribed Image Text:Eastman Publishıng Company is considering publishing an electronic textbook about spreadsheet applications for business. The fxed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $150,000. Vanable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be antiopated with a demand of 3,400 copies? For subtractive or negative numbers use a minus sign. 7200 (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 3,000 to 3,200 copies. (i) Breakeven appears in the interval of 3,400 to 3,600 copies. () Breakeven appears in the interval of 3,600 to 3,800 copies. (iv) Breakeven appears in the interval of 3,800 to 4,000 copies. Option (ii) (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. if required, round your answer to two deomal places. 51
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Could you solve part (d) in the image

•
8
Ⓒ
?
U
CENGAGE MINDTAP
Chapter 10 Assignment
(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 3,000 to 3,200 copies.
(ii) Breakeven appears in the interval of 3,400 to 3,600 copies.
(iii) Breakeven appears in the interval of 3,600 to 3,800 copies.
(iv) Breakeven appears in the interval of 3,800 to 4,000 copies.
Option (ii)
(c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. If required, round your answer to two decimal
places.
$
51.12
(d) Consider the following scenarios:
Variable
Cost/Book
Access Price
Demand
O Icon Key
Scenario 1
$7
$49
3,000
Scenario 2
Problem 10-03 Algo (What-If Analysis)
$10
$40
2,000
Scenario 3
$11
$45
4,500
Scenario 4
$8
$50
6,000
Scenario 5
$13
Q Search this course
$55
1,000
For each of these scenarios, the fixed cost remains $150,000. 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 minus sign.
Scenario 4
✓yields the highest profit of $
Scenario 5
✓yields the lowest profit of $
Save
Question 1 of 5 ►
Submit Assignment for Grading
X
A-Z
O
W
A+
Transcribed Image Text:• 8 Ⓒ ? U CENGAGE MINDTAP Chapter 10 Assignment (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 3,000 to 3,200 copies. (ii) Breakeven appears in the interval of 3,400 to 3,600 copies. (iii) Breakeven appears in the interval of 3,600 to 3,800 copies. (iv) Breakeven appears in the interval of 3,800 to 4,000 copies. Option (ii) (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. If required, round your answer to two decimal places. $ 51.12 (d) Consider the following scenarios: Variable Cost/Book Access Price Demand O Icon Key Scenario 1 $7 $49 3,000 Scenario 2 Problem 10-03 Algo (What-If Analysis) $10 $40 2,000 Scenario 3 $11 $45 4,500 Scenario 4 $8 $50 6,000 Scenario 5 $13 Q Search this course $55 1,000 For each of these scenarios, the fixed cost remains $150,000. 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 minus sign. Scenario 4 ✓yields the highest profit of $ Scenario 5 ✓yields the lowest profit of $ Save Question 1 of 5 ► Submit Assignment for Grading X A-Z O W A+
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