Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web siteconstruction is estimated to be $158,000. Variable processing costs are estimated to be $8 per book. The publisher plans to sell single-user access to the book for $42.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 ofthe 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 yourmodel for the given costs and single user access price (in dollars).$30568(b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.)$ 50.75(c) Use a data table that varies price from $50 to $400 in increments of $25 to find the price (in dollars) that maximizes profit.$ 325

Part 2: Approach to solving the question:To construct an appropriate spreadsheet model for…

Answered: Eastman Publishing Company is…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A large, profitable commercial airline companyflies 737-type aircraft, each with a maximum seatingcapacity of 132 passengers. Company literature statesthat the economic breakeven point with these aircraft is62 passengers. (2.2)a. Draw a conceptual graph to show total revenue andtotal costs that this company is experiencing.b. Identify three types of fixed costs that the airlineshould carefully examine to lower its breakevenpoint. Explain your reasoning.c. Identify three types of variable costs that canpossibly be reduced to lower the breakeven point.Why did you select these cost items?
interpret Company A and Company B's results below in terms of the factors that impact Cost Volume Profit Analysis (CVP). Why does Company B have the greater degree of operating leverage? As a manager, why is operating leverage an important concept? Company A Company B Sales (10,000 units times $26) $260,000 Sales (10,000 units times $32) $320,000 Less Variable expenses (10,000 units $16) 160,000 Less Variable expenses (10,000 units times $20) 200,000 Contribution margin (a) 100,000 Contribution margin (a) 120,000 Less Fixed expenses 80,000 Less Fixed expenses 100,000 Net operating income (b) 20,000 Net operating income (b) 20,000 Degree of operating leverage (a divided by b) 5.0 Degree of operating leverage (a divided by b) 6.0
Describe the results of your two graphs as they compare to the movement of demand. Be specific. Choosing between the three-period and the five-period forecasts, which length of averaging would you use as a purchasing manager of Greenfield’s Tannery? Be sure to factor in the cumulative forecast errors in your answer. Also, make sure you include some rationale about why you are picking the method you do for this particular business. So for example, does picking one method over the other have any impact on how much inventory they will have on hand to meet customer demand? What happens when the demand drops? Which method better supports that?
Using the actual sales (in units) over the past 15 months, a demand planner at a leading e-commerce firm has forecasted the demand for a popular consumer product as shown below. Forecast 1 and Forecast 2 represent the outputs of two comparative forecasting methods currently used by the sales and marketing, and operations departments of the firm. Month October 22 November 22 December 22 January 23 February 23 March 23 April 23 May 23 June 23 July 23 August 23 September 23 October 23 November 23 December 23 Actual sales (units) 120 000 138 000 172 000 120 000 114 000 98 000 118 000 112 000 132 000 138 000 108 000 126 000 144 000 162 000 189 000 QUESTION 24 Determine the mean absolute deviation of Forecast 1. A 234 290 units a 18 721 units c 19 524 units 22 670 units QUESTION 25 Determine the mean absolute deviation of Forecast 2. A 21 638 units a 35 280 units c. 19 330 units 23 600 units Forecast 1 (units) 133 280 130 620 127 300 121 440 120 750 119 000 121 600 124 900 121 500 122400 126…
The company has data on demand and factory capacity for the next 4 months as in the table. Unit cost with regular time $ 24, overtime cost $ 28, on subcontract $ 34. Storage costs $ 2 per unit per month; backorders cost $ 5 per unit per month. Initial inventory is as many as 120 units, and it is expected that by the end of July there will be an inventory of 100 units. April May June July Demand 460 450 480 480 Regular Capacity 370 370 380 380 Overtime Capacity 60 60 60 60 Subcontract Capacity 30 30 30 30 Use the transportation method to optimize the aggregate plan. Determine the production cost each month and the total cost for 4 months
Explain Scheduling Daily Work Times?
Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea. Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)." What is the slope, including units, of the model for streaming videos?
A tour guide charges a price of $600 per person for a jungle tour and typically 8 persons sign up for the tour. One time the guide offers the jungle tour at a discounted price of $525 per person and finds that 11 persons sign up for the tour. Assuming the demand trend is linear and that for each price drop of $25, one more person is interested in the tour, what size of group a will produce the largest revenue for the tour guide? I
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An entrepreneur who owns and operates two businesses (A and B) would like to analyze their profitability. They would like your help in the analysis. They give you the annual net profit (in thousands of $) for each business from 2008-2020. Table 1: Annual Net Profits for Businesses A and B Business Year Profit Business Year Profit 2008 -50 2008 -10 2009 57 2009 30 2010 71 2010 27 2011 64 2011 22 2012 60 2012 21 2013 50 2013 20 A 2014 41 2014 24 2015 59 2015 24 2016 71 2016 32 2017 71 2017 36 2018 74 2018 37 019 81 20 40 2020 97 2020 49 a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that? d. Suppose that instead of having 26 observations you have 200 observations. What graph should you generate? e. What other type of…
Refer to the production possibilities curves for Chairland and Tableland. Chairland can produce 36 chairs per day and no tables, or 18 tables table per day and no chairs. Tableland can produce 40 chairs per day and no tables, or 40 tables per day and no chairs. If the two countries split the difference between the buyer's willingness to pay for tables and the seller's willingness to accept, in terms of the number of chairs for 1 table, the terms of trade will be . (Enter your response rounded to one decimal place.) Country Quantity per day Opportunity cost of chairs Opportuity cost of tables Tableland 40 chairs, 40 tables 1 table 1 chair Chairland 36 chairs, 18 tables 1/2 table 2 chairs

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