Question

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 $150,000. Variable processing costs are estimated to be $7 per book. The publisher plans to sell single-user access to the book for $49.

(c)	Use Goal Seek to answer the following question. With a demand of 3,400 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.
	$

Answer 1

a) 3400 * p = 150000 + 3400 * 7

or, 3400 * p = 173800

or, p = $51.12 (ans)