Professional Documents
Culture Documents
Performing What-If
Analyses
Objectives
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Objectives
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Visual Overview
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Understanding CostXP
Volume-Profit
Relationships
Cost-volume-profit (CVP) analysis
Studies the relationship between
expenses, sales volume, and
profitability
Helps predict the effect of cutting
overhead or raising prices on a
companys net income
Sometimes called break-even
analysis
New Perspectives on Microsoft Excel 2010
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Performing a What-If
Analysis with Goal Seek
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Performing a What-If
Analysis with Goal Seek
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Charting a One-Variable
Data Table
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Creating a Two-Variable
Data Table
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Creating a Two-Variable
Data Table
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Charting a Two-Variable
Data Table
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Visual Overview
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What-If Scenarios
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Editing a Scenario
Edit the assumptions to view other
possibilities
Worksheet calculations are
automatically updated to reflect
the new scenario
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Creating a Scenario
Summary Report
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Scenario Summary
Report
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Creating a Scenario
PivotTable Report
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Creating a Scenario
PivotTable Report
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Visual Overview
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Using Solver
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Understanding Price
Elasticity of Demand
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Understanding Price
Elasticity of Demand
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Elasticity
Effect of one financial variable
upon another
Price elasticity of demand
Effect that price has on demand
Elasticity measures are always
expressed as positive values
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Price Elasticity of
Demand
Relatively inelastic
Price elasticity of
demand is
less than 1
Large changes in price
cause small changes in
demand
Perfectly inelastic
Elasticity equals 0
Changes in price have
no impact on demand
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Perfectly elastic
Large elasticity values
Any change in price
causes a huge change
in demand
Unit elastic
Elasticity equals 1.0
Any change in price is
met by an equal and
opposite change in
demand
Relatively elastic
Price elasticity of
demand is greater than
1
Demand
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on Microsoft
Excel 2010
is very
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Setting Up Solver
Constraints
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Setting Up Solver
Constraints
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Setting Up Solver
Constraints
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Sections of a Solver
Answer Report
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Titles
Information about the objective cell:
location, cell label, and cells original
value and final values
Information about the changing cells
(variable cells): location, column and
row label, original value, and final
value of each cell
Information about the constraints:
not binding and binding, and slack
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Choosing a What-If
Analysis Tool
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Data
tables
Create a
scenario
Solver
Goal
If you dont need to specify any constraints on
New Perspectives
on Microsoft
2010
Seek
yourExcel
solution
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