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

  Calculate alberts recognized gain under both options

Albert is considering two options for selling land for which he has an adjusted basis of $70,000 and on which there is a mortgage of $100,000. Under the first option, Albert will sell the land for $150,000 with a stipulation in the sales contract tha..

  What are the critical deficiencies

­Do you think the recommendations put forth in the Exposure Draft are likely to be successful or not? If successful, what are the most significant attributes? If not successful, what are the critical deficiencies?

  The cfo for fin tackle company a manufacturer of fine

the cfo for fin tackle company a manufacturer of fine completing supplies has provided you the subsequent information

  Prepare the stockholders equity section of the balance sheet

Prepare the stockholders equity section of the balance sheet, for Penn Company as of June 30, 2015, as it should appear in its annual report to the shareholders.

  Evaluate the gross profits to be identifies

Evaluate the gross profits to be identifies for each of the three years. If the outcome of the construction contract can't be reliably estimated, evaluate the gross profit for each year be?

  Extra inventory that is used to avoid stockouts is known

An increase in ordering cost will increase the economic order quantity, holding all other factors constant. In making inventory decisions, the purpose of the basic EOQ model is to. Extra inventory that is used to avoid stockouts is known as:

  Question smart hardware purchase new shelving for its

question smart hardware purchase new shelving for its store on 1st april2011. the shelving is expected to have a 20 yr

  Product cost for the absorption and variable costing

I'm having trouble determining the unit product cost for the absorption and variable costing. Concerning the absorption costing I keep adding the wrong values and do not get the correct net operating income, what is that?

  Respect to beginning and ending work in process inventory

Lucas Company uses the weighted average method in its process costing system. The company adds materials at the beginning of the process in the forming department, which is the first of two stages in its production process. Materials are 100% complet..

  Passes through two processes-mixing and molding

Ralph, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department (i.e., same completion percentage applies to materials and conversion costs). Calculate the..

  Analyze financial statements of the coca-cola company

Calculate common-size financial statements and financial ratios we covered in Session 5 for Coca-Cola over the period 2011-2013.

  Calculate net income to average common stockholders equity

Calculate Net income to average common stockholders' equity, Number of days' sales in accounts receivable (assume 365 days in fiscal year 2011) and Inventory turnover.

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