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 $5 per book. The publisher plans to sell single-user access to the book for $45.

(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 3,700 copies?

(b) For subtractive or negative numbers use a minus sign.

(c) Use Goal Seek to answer the following question. With a demand of 3,700 copies, what is the access price per copy that the publisher must charge to break even?

(d) If required, round your answers to two decimal places. .