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 $175,000. variable processing costs are estimated to be $5 per book. the publisher plans to sell single-user access to the book for $49. through a series of web-based experiments, eastman has created a predictive model that estimates demand as a function of price. the predictive model is demand = 4,000 - 6p, where p is the price of the e-book.
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?