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 $5 per book. The publisher plans to sell single-user access to the book for $49. 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 where p is the price of the e-book. 4,000- 6p, (a) Build a spreadsheet model to calculate the prof/loss for a given demand. What is the demand?
(b) Use Goal Seek to calculate the price that results in breakeven. If required, round your answer to two decimal places.
(c) Use a data table that varies price from $50 to $400 in increments of $25 to find the price thatmaximizes profit.