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10 what if analysis;Things could go many different ways. There are all sorts of quantitative factors that can affect how your business will work, how your finances will fare, how your schedule will manage, and so forth. Excel excels at helping you model and manage all your projections, evaluating how changes in those
factors will affect the variables you care about most. In this chapter, you’ll learn about three key features—scenarios, Goal Seek, and Solver—that are designed to make assessing all your “what ifs” a breeze.;Should your friend Betty advertise?
Betty sells the best baguettes in Dataville. But in spite of her renown, she is interested in expanding her business through advertising. She’d like to add more customers to her already stable customer base. But ads can be expensive. Would advertising be worthwhile?
She’s enlisted you for help, and if your recommendations pay off, your baguettes will be on the house.;Here’s Betty’s weekly cash flow statement. You’re going to use this spreadsheet as the basis for your projections about advertising costs and revenue. Rework this spreadsheet to accommodate blanks for ad costs and revenue from baguettes sold to new customers. Where would you put the new information?;Goal Seek optimizes a value by trying a bunch of different candidate values;Find the breakeven new-customer count for TV and magazine ads.
1、Add the new cell from the previous page. Its formula should be the amount of income from new customers minus the cost of the ad.
2 、Save each to a scenario. Do you need to run it for magazine ads?;You just ran Goal Seek to figure out the breakeven points for both TV and magazine advertising.
What did you find?;Write the formula to incorporate this equation into your model.
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