A3 3. E-book Profit/Loss. Eastman Publishing Company is considering publishing an electronic textbook aboutspreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web siteconstruction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisherplans to sell single-user access to the book for $46, LO 1, LO 2, LO 3a. Create an influence diagram to calculate the profit/loss.b.Build a spreadsheet model to calculate the profit/loss for a given demand. What profit can be anticipated with ademand of 3,500 copies?c. Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to assess the sensitivity of profit todemand.4. E-book Profit/Loss (revisited). Consider the Profit/Loss problem presented in problem 3. LO 5, LO 6.a. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with ademand of 3,500 copies..b. Consider the following scenarios:Variable Cost/BookAccess PriceScenario 1$6$462,500DemandScenario 2$8$501,000Scenario 3$12$406,000Scenario 4$10$505,000Scenario 5$11$602,000For each of these scenarios, the fixed cost remains $160,000. Use Scenario Manager to generate a summaryreport that gives the profit for each of these scenarios. Which scenario yields the highest profit? Which scenarioyields the lowest profit?

There are multiple sub-parts but due to our protocol, only first three are solved and another…

Answered: a. Create an influence diagram to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
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 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…
3. 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 P160,000. Variable production and materials costs are estimated to be P6 per book. The publisher plans to sell the text to college and university bookstores for P46 each. a. b. C. d. If the publisher believes that the price per copy could be increased to P50.95 and not affect the anticipated demand of 3,800 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.
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 $171,000. Variable processing costs are estimated to be $8 per book. The publisher plans to sell single-user access to the book for $41. 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
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?
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 $156,000. Variable processing costs are estimated to be $9 per book. The publisher plans to sell single-user access to the book for $44. 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 price…
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?
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 $153,000. Variable processing costs are estimated to be $7 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). $ -11260 (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) $ 48.23 (c) Use a data table…
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?

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