Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of 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 access to the book for $46 each. Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4000-6*p where p is the price of the e-book.
Build a spreadsheet model to calculate the profit/loss for a given price.
Use goal seek to compute the price that results in break even
Use a data table that varies price from $50 to $400 increment of $25 to find the price that maximizes profit.