1. Microsoft Office Excel 2010 ® ® Tutorial 10: Performing What-If Analyses

2. XP New Perspectives on Microsoft Excel 20102 Objectives Explore the principles of cost-volume-profit relationships Perform a basic what-if analysis Use Goal Seek to calculate a solution Create a one-variable data table Create a two-variable data table Create and apply different Excel scenarios Generate a scenario summary report Generate a scenario PivotTable report

3. XP New Perspectives on Microsoft Excel 20103 Visual Overview

4. XP New Perspectives on Microsoft Excel 20104 Data Tables and What-If Analysis

5. XP New Perspectives on Microsoft Excel 20105 Understanding Cost-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 company’s net income – Sometimes called break-even analysis

6. XP New Perspectives on Microsoft Excel 20106 Comparing Expenses and Revenue Types of expenses – Variable expenses change in proportion to the amount of business a company does – Fixed expense must be paid regardless of sales volume – Mixed expense is part variable and part fixed

7. XP New Perspectives on Microsoft Excel 20107 Determining the Break-Even Point Break-even point: revenue equals expenses A CVP chart shows the relationship between expenses and revenue

8. XP New Perspectives on Microsoft Excel 20108 Performing a What-If Analysis with Goal Seek What-if analysis lets you explore the impact of changing different values in a worksheet Goal Seek automates trial-and-error process – Allows you to specify a value for a calculated item – Excel returns input value needed to reach the goal – Goal Seek dialog box

9. XP New Perspectives on Microsoft Excel 20109 Performing a What-If Analysis with Goal Seek

10. XP New Perspectives on Microsoft Excel 201010 Working with Data Tables Display results from several what-if analyses One-variable data table – Specify one input cell and any number of result cells – Useful in business to explore how changing a single input cell can impact several result cells

11. XP New Perspectives on Microsoft Excel 201011 Charting a One-Variable Data Table Gives a better picture of relationship between sales volume, revenue, and total expenses

12. XP New Perspectives on Microsoft Excel 201012 Creating a Two-Variable Data Table Analyzes a variety of combinations simultaneously Uses two input cells, but displays only a single result value Must identify the row input cell and the column input cell

13. XP New Perspectives on Microsoft Excel 201013 Creating a Two-Variable Data Table

14. XP New Perspectives on Microsoft Excel 201014 Charting a Two-Variable Data Table

15. XP Tutorial Steps 1 - 12 New Perspectives on Microsoft Excel 201015

16. XP New Perspectives on Microsoft Excel 201016 Visual Overview

17. XP New Perspectives on Microsoft Excel 201017 What-If Scenarios

18. XP New Perspectives on Microsoft Excel 201018 Using the Scenario Manager Create scenarios to perform a what-if analysis with more than two input cells Define names for all input and result cells that you intend to use in the analysis – Defined names automatically appear in reports generated by the Scenario Manager – Using defined names makes it easier to work with scenarios and understand the scenario reports

19. XP New Perspectives on Microsoft Excel 201019 Using the Scenario Manager Use the Scenario Manager to define scenarios – Each scenario includes a scenario name, input cells, and values for each input cell – Number of scenarios is limited only by computer’s memory Input cells are referred to as changing cells – Contain values that are changed under the scenario – Can be located anywhere in the worksheet

20. XP New Perspectives on Microsoft Excel 201020 Using the Scenario Manager Edit Scenario dialog box

21. XP New Perspectives on Microsoft Excel 201021 Using the Scenario Manager Scenario Values dialog box

22. XP New Perspectives on Microsoft Excel 201022 Using the Scenario Manager View the effect of each scenario by selecting it in the Scenario Manager dialog box

23. XP New Perspectives on Microsoft Excel 201023 Using the Scenario Manager Editing a Scenario – Edit the assumptions to view other possibilities – Worksheet calculations are automatically updated to reflect the new scenario

24. XP New Perspectives on Microsoft Excel 201024 Creating a Scenario Summary Report Displays the values of the input cells and result cells under each scenario Tabular layout makes it simpler to compare results of each scenario Automatic formatting makes it useful for reports and meetings

25. XP New Perspectives on Microsoft Excel 201025 Scenario Summary Report

26. XP Tutorial Steps 13 - 23 New Perspectives on Microsoft Excel 201026