Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

Exercise 10

Consider again Problem 3. 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 5 4000 2 6 p where p is the price of the e-book.
a. Update your spreadsheet model constructed for Problem 3 to take into account this demand function.
b. Use Goal Seek to calculate the price that results in breakeven.
c. Use a data table that varies price from $50 to $400 in increments of $25 to find the price that maximizes profit.