Answer:
the demand is 3,730 units
Explanation:
since the predictive model estimates demand as 4,000 - 6p, then at a selling price of $45 per ebook, the total demand = 4,000 - (6 x 45) = 4,000 - 270 = 3,730 units.
the estimated profit when demand = 3,730 is:
total revenue = 3,730 x $45 = $167,850
- variable costs = 3,730 x $5 = ($18,650)
- fixed costs = ($170,000)
net loss = -$20,800
I attached the excel spreadsheet model