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Break Even Analysis Spreadsheet Form

Break Even Analysis Spreadsheet Form

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Video instructions and help with filling out and completing Break Even Analysis Spreadsheet Form

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Instructions and help about Break Even Analysis Spreadsheet

In this video, I’m going to demonstrate sensitivity analysis for a profit model by using the Goal seek function in Excel. Suppose we have a selling price per unit of $6, a fixed cost of $2,000 and a variable cost per unit of $2. Suppose units is 300. For total revenue, I’ll input =selling price times units. For total cost, = fixed cost + variable cost time units. And gross profit will be = total revenue minus total cost. Note that we really don’t need the total revenue and total cost cells. We can just go for the profit formula directly here. So, what we have just developed is a profit model. I’m currently showing formulas here. You can use Ctrl+` to toggle between values and formulas. I’m going to double click between A & B and between B and C to reveal all cell contents. As you can see here, we have a loss of $800. Suppose let us to determine the number of units to break-even using Goal Seek. Click on the Data tab, What if Analysis, then Goal Seek. Since our objective is to

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