Question

Write the steps for the following: Enter the data in a spreadsheet and calculate the quantity of books to get the revenue of 50,000 using goal seek. What will be the revenue of the books, if the variables for quqntity are 1000,5000,10000,15000 and 20000? Calculate using the Data Tabel Tool. 15 points

Answer 1

Answer:

The Goal Seek Excel function (often referred to as What-if-Analysis) is a method of solving for a desired output by changing an assumption that drives it. The function essentially uses a trial and error approach to back-solving the problem by plugging in guesses until it arrives at the answer. For example, if the formula for revenue is equal to the number of units sold multiplied by the selling price, Goal Seek can determine how many units have to be sold to reach $1 million of revenue, if the selling price is known. The function is extremely useful for performing sensitivity analysis in financial modeling.