In economics, the question often arises: Do you leave or keep a product? The answer to this dilemma is often difficult to find, but by analyzing the summary of the income statement we can come up with quantitative data that can make it easier for us to make such a decision. This is also an appropriate way to apply a Scenario method by which we can calculate alternatives depending on the steps taken.
The Goal Seek option allows us to easily find a value that meets the set goal. However, this is an option of modest possibilities. To find the optimal calculated solution, by setting the target value and additional parameters, use the Excel Add-in named Solver. It is a complex tool, with many possibilities, which comes up to the target by applying one of the methods of Operational Research.
Goal Seek is one of the What-If tools used to calculate how much to change an argument of a formula, or argument that indirectly affects to it, in order to get a certain result. This is a simple option that can be used, for example, to calculate the sales price of the item that is needed to reach the desired sales level. Learn about the Goal Seek option in the text that follows …
One of the What-If analysis tools are Data tables. It is an option that allows the formula’s arguments to be taken from the rows or columns of a specially formed table and thus automatically populated. In practice, this option is not used as often, but it can be handy when we use functions that have more arguments to see the value of the results depending on the change of arguments.
The main feature of modern business is that the changes are quick and unpredictable. As a result, it is sometimes necessary to make several variations of the report, taking into account several possible alternatives to the value of the data that may affect the final outcome. For this purpose, the scenario method is used. Excel offers the ability to easily add, edit, and delete scenarios. The scenario shows the ability to display alternative business reports.