Eastman Publishing Company is considering publishing a paperback textbook spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $100,000. Variable production and material costs are estimated to be $5 per book. The publisher plans to sell the text to college and university bookstores for $45 each. a. What is the breakeven point? b. What profit or loss can be anticipated with a demand of 3000 copies? c. With a demand of 1800 copies, what is the minimum price per copy that the publisher must charge to break even?
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- Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction is estimated to be $160,000. Variable processing costs are estimated to be $6.00 per book. The publisher plans to sell single-user access to the book for $46. a. Build a spreadsheet model to calculate the profit/loss for a given demand. For example, what profit can be anticipated with a demand of 3500 copies? b. Use a data table to very demand from 1000 to 6000 in increments of 200 to assess the sensitivity of profit to demand. c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with the demand of 3500 copies. Before you move on to Problem 2, make sure you save your workbook with this value displayed or else you will not receive credit.1.Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $60,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 3800 copies. The publisher plans to sell the text to college and university bookstores for $18 each. What is the breakeven point? What profit or loss can be anticipated with a demand of 3800 copies? With a demand of 3800 copies, what is the minimum price per copy that the publisher must charge to break even?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 $175,000. Variable processing costs are estimated to be $8 per book. The publisher plans to sell single-user access to the book for $54. (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 3,300 copies? For subtractive or negative numbers use a minus sign. -23,200 (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 3,400 to 3,600 copies. (ii) Breakeven appears in the…
- Eastman Publishing Company is considering publishing a paperbadk textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $160,000. Variable production and material costs are estimated to be $6 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans on selling the text to college and university bookstores for $46 each. a. What is the breakeven point?Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cast of manuscript preparation, textbook design, and web-site construction is estimated to be $155,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $47. (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. -23800 (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? (1) Breakeven appears in the interval of 3,200 to 3,400 copies. (1) Breakeven appears in the interval…Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet application for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $80,000. Variable production and material cost are estimated to be $3 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstore for $20 each. Required: a). What is the breakeven point? b). What profit or loss can be anticipated with a demand of 4000 copies? c). With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to breakeven? d) If the publisher believes that the price per copy could be increased to $25.95and not affect the anticipated demand of 4000 copies, what action would you recommend? What profit or loss can be anticipated?
- Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $80,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstores for $20 each. Q) If the publisher believes that the price per copy could be increased to $25.95 and not affect the anticipated demand of 4000 copies, what action would you recommend? What profit or loss can be anticipated?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 $162,000. Variable processing costs are estimated to be $6.89 per book. Use Goal Seek to determine the access price per copy (in dollars) that the publisher must charge to earn a profit of $100,000 with a demand of 31,000 copies.D's is considering publishing a paperback textbook onspreadsheet applications for business. The fixed cost of manuscriptpreparation, textbook design, and production setup is estimated to beP100,000. Variable production and material costs are estimated to be P150 perbook. Demand over the life of the book is estimated to be 4000 copies. Thepublisher plans to sell the text to college and university bookstores for P1000each. e. What profit or loss can be anticipated with a demand of 4000 copies? f. With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to break even? g. If the publisher believes that the price per copy could be increased to P1, 297. 50 and would not affect the anticipated demand of 4000 copies, what action would you recommend? h. What profit or loss can be anticipated?
- Miller Books is considering publishing a book about meditation. The fixed costs to publish the book is estimated at $160,000. Variable material costs are estimated at $6 per book. Demand over the life of the textbook is estimated at 4,000 copies. Miller books anticipates that they can sell the books for $46 per unit. a) Write an expression for total revenue b) Write an expression for total cost c) Write an expression for total profit d) Find the break-even point e) Recommend a strategy if Miller will not be able to sell more than 3,500 copies.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 $170,000. Variable processing costs are estimated to be $4 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 – 6p, where p is the price of the e-book. (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given single-user access price taking into account the above demand function. What is the profit estimated by your model for the given costs and single user access price (in dollars). $ (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) $ (c) Use a data table that varies…A recently retired professor, Melinda Marketing, plans to establish the Hot-Air FanCompany and manufacture circulating fans. She estimates the fixed cost of operations tobe $357,500 annually. The variable cost of producing the fans is forecasted to be $85 perunit.a. How many fans must be sold to break even if the fans are priced at $150?b. If Hot-Air sells 6,000 fans, what will be the EBIT?c. If Hot-Air sells 6,000 fans and has interest expense of $8,125, what is Hot-Air’stimes-interest-earned? Hot-Air does not have any nonoperating expenses.d. If the fans are priced at $150, what is Hot-Air’s breakeven sales?