Calculate the profit and loss for a given demand

Assignment Help Financial Accounting
Reference no: EM131295498

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 $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $46.

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 3,500 copies?

For subtractive or negative numbers use a minus sign.

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 3,600 to 3,800 copies.

(ii) Breakeven appears in the interval of 4,000 to 4,200 copies.

(iii) Breakeven appears in the interval of 4,200 to 4,400 copies.

(iv) Breakeven appears in the interval of 4,400 to 4,600 copies.

C: Use Goal Seek to answer the following question. With a demand of 3,500 copies, what is the access price per copy that the publisher must charge to break even?

If required, round your answers to two decimal places.

Reference no: EM131295498

Questions Cloud

Write an essay about introduction to microeconomics : Write an essay about Introduction to Microeconomics and Introduction to Macroeconomics. To more fully appreciate macroeconomic data and how that data relates to people, students in Macroeconomics.
Capture value and sustain competitive advantage : Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:
Offering weather and biometeorological analytics : In your Conclusion, recommend if The Weather Company should expand its efforts developing consumer apps or focus on its professional services division, offering weather and biometeorological analytics to its business customers. Can TWC effectively..
What is the steady state current : A 100-mH inductor and a 100-Ω resistor are connected in parallel. The circuit is excited by a voltage source with vS(t) = 10 cos (1 kt - 45°) V. What is the steady-state current iS(t) flowing from the source?
Calculate the profit and loss for a given demand : 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 $160,000. Build a spreads..
Find the steady state current through the series connection : A voltage v (t) = 100 cos 3 k (t) V is applied across a series connection of a 33-kΩ resistor and 3300-pF capacitor. Find the steady-state current i(t) through the series connection.
Employer-employee rights and policy issues : How do you think technology is creating employer/employee rights and policy issues? What are some actions a company can take to lessen these issues?
Current competitive position : 1. What is each company's current competitive strategy (be specific)? 2. What are they doing to improve their current competitive position? 3. What likely moves or strategy shifts will they make?
Derive a general expression for the phasor response : The circuit in given figure is operating in the sinusoidal steady state with vS(t) = VA cos (ωt). Derive a general expression for the phasor response IL and the voltage VO.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd