Eastman publishing company is considering publishing an electronic textbook on 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 access to the book for $46 each.
a. build a spreadsheet model to calculate the profit/loss for a given demand. what profit can be anticipated with a demand of 3500 copies?
b. use a data table to vary demand from 1000 to 6000 increments of 200 to assess the sensitivity of profit to demand.
c. use goal seek to determine the access price per copy that the publisher must charge to break even with a demand of 3500 copies.
Answers: 2
Business, 21.06.2019 16:20, melanie687
Homestead jeans co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. monthly fixed costs are $54,000, and variable costs are $29 per unit. the present selling price is $42 per unit. on november 12 of the current year, the company received an offer from dawkins company for 18,000 units of the product at $32 each. dawkins company will market the units in a foreign country under its own brand name. the additional business is not expected to affect the domestic selling price or quantity of sales of homestead jeans co. a. prepare a differential analysis dated november 12 on whether to reject (alternative 1) or accept (alternative 2) the dawkins order. if an amount is zero, enter zero "0". for those boxes in which you must enter subtracted or negative numbers use a minus sign.
Answers: 1
Business, 22.06.2019 04:50, garrowe96
Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?
Answers: 2
Eastman publishing company is considering publishing an electronic textbook on spreadsheet applicati...
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