Page 380 - Computer Software Application TP - Volume 1

COMPUTER SOFTWARE APPLICATION - CITS

5 Run Goal Seek
Click “OK” in the Goal Seek dialog box. Excel will perform calculations to find the required Number of Units to
achieve the target Production Cost.

Related Exercises:
1 You are managing a project budget, and the total project cost (Total CostTotal Cost) is determined by the
formula:
Total Cost=Fixed Costs+(Variable Cost per Unit×Number of Units)Total Cost=Fixed Costs+(Variable Cost
per Unit×Number of Units)
You want to use Goal Seek to determine the required number of units if the fixed costs are $10,000, and
the target total cost is $25,000.

2 In a manufacturing process, the production time per unit (Production TimeProduction Time) is determined
by the formula:
Production Time=Fixed Time+(Variable Time per Unit×Number of Units)Production Time=Fixed
Time+(Variable Time per Unit×Number of Units)
You want to use Goal Seek to determine the required number of units if the fixed time is 5 hours, and the
target production time is 20 hours.

b Excel Solver:

Excel Solver is a powerful tool used for optimization and solving complex problems by finding the best solution
based on a set of constraints. It is commonly used in operations research, engineering, finance, and other
fields where optimization is required
Add Solver to your Excel worksheet
The Solver add-in is added with all versions of Microsoft Excel though it is not enabled by default. You need
to manually add Solver to your Excel worksheet. To incorporate a Solver into your Excel worksheet, follow the
below-given steps.

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CITS : IT & ITES - Computer Software Application - Exercise 65 CITS : IT & ITES - Computer Software Application - Exercise 65