goal seek question

[johnhomework]

I am in a class to figure with the sales amount needs to be in orde
make 500.000 for the net income. I can't get it to work yet. I ge
errors such has you need a formula. I think the directions mayb
faulty. Is there any certain way you needd to use goal seek to ensur
it works proper?:confused

 

[Frank Kabel]

Hi
not sure I understand you but with X = sales amaount:
500000 = x*price - x*variable_cost - fixed_cost
-> 500000 + fixed_cost = x*(price - variable_cost)
-> x = (500000+fixed_cost)/(price - variable_cost)

Just replace the variables with your cell reference. But of course you
can use the solver. you only have to set-up the formulas up-front

HTH
Frank

 

[Guest]

John
The formula to calculate net income must be in the "Set Cell

Say your formula is net_income=sales * price * 10%

Now assume sales is in B1 and price is $1000.00. Then in A1 enter
=B1*1000*0.1

Now for goal seek use
Set Cell: A
To Value: 50000
By changing cell: B

Excel will now adjust the value in B1 until the formula in A1 equals 500,000

To borrow from Frank's post you would use this formula in A1
= B1*price - B1*variable_cost - fixed_cos

Don't forget to give us a reference in your write-up

Good Luck
Mark Graesse
(e-mail address removed)


----- johnhomework > wrote: ----

I am in a class to figure with the sales amount needs to be in orde
make 500.000 for the net income. I can't get it to work yet. I ge
errors such has you need a formula. I think the directions mayb
faulty. Is there any certain way you needd to use goal seek to ensur
it works proper?:confused