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.

the answer is: guns or butter

hope i

-lavira : )

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answer; advertising;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.