Page 222 - CITS - Computer Software Application -TT

COMPUTER SOFTWARE APPLICATION - CITS

As the result, you will find out that if you increase the unit price to $11, you can reach $1,000 revenue by selling
only 100 items.

Tips and notes
• Excel Goal Seek does not change the formula, it only changes the input value that you supply to the By
changing cell box.
• If Goal Seek is not able to find the solution, it displays the closest value it has come up with.
• You can restore the original input value by clicking the Undo button or pressing the Undo shortcut (Ctrl + Z).
Examples of using Goal Seek in Excel

Below you will find a few more examples of using the Goal Seek function in Excel. The complexity of your business
model does not really matter as long as your formula in the Set cell depends on the value in the Changing cell,
directly or through intermediate formulas in other cells.

Example 1: Reach the profit goal
Problem: It is a typical business situation - you have the sales figures for the first 3 quarters and you want to know
how much sales you have to make in the last quarter to achieve the target net profit for the year, say, $100,000.

Solution: With the source data organized like shown in the screenshot above, set up the following parameters
for the Goal Seek function.
• Set cell - the formula that calculates the total net profit (D6).
• To value - the formula result you are looking for ($100,000).

• By changing cell - the cell to contain the gross revenue for quarter 4 (B5).

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CITS : IT&ITES - Computer Software Application - Lesson 63 - 77