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# Corality Pty Ltd

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## Primary Developer: Liam Bastick

General Cover Notes:
How to build a ranked sensitivity chart (often known as a tornado chart).
Website:
For past articles visit:

liam.bastick@corality.com
www.corality.com
www.sumproduct.com

Go to Cover Sheet

## Section & Sheet Titles

b. Simple P&L Example

Total Pages:

Page
3
4
5

Section 1.

## Section Cover Notes:

Walk-through example.

Sensitivity Data
Units Produced

Proportion of Product A

Price of Product A

Price of Product B

## Gross Margin, Product B

Operating Expenditure

Tax

Data Table
Raw Data
acknowledges that
that the
the RANK
RANK function
function
will
will allow
allow more
more than
than one
one value
value to
to have
have the
the same
same
rank,
rank, which
which will
will cause
cause problems
problems in
in calculations
calculations
below.
below.

Activate? 1

Units Produced
Proportion of Product A
Price of Product A
Price of Product B
Gross Margin, Product A
Gross Margin, Product B
Operating Expenditure
Tax

(10.0%)
\$317,909
\$438,397
\$348,031
\$424,222
\$348,031
\$424,222
\$545,344
\$473,816

\$454,344
\$454,344
\$454,344
\$454,344
\$454,344
\$454,344
\$454,344
\$454,344

10.0%
\$590,778
\$470,291
\$560,656
\$484,466
\$560,656
\$484,466
\$363,344
\$434,872

(10.0%)
(\$136,434)
(\$15,947)
(\$106,313)
(\$30,122)
(\$106,313)
(\$30,122)
\$91,000
\$19,472

10.0%
\$136,434
\$15,947
\$106,313
\$30,122
\$106,313
\$30,122
(\$91,000)
(\$19,472)

(10.0%)
(\$136,434)
(\$106,313)
(\$106,313)
\$91,000
(\$30,122)
(\$30,122)
\$19,472
(\$15,947)

10.0%
\$136,434
\$106,313
\$106,313
(\$91,000)
\$30,122
\$30,122
(\$19,472)
\$15,947

This
(second half
half of
of the
the calculation)
calculation) is
is
merely
merely an
that takes
takes into
into account
account
original
position
in
the
sensitivity
table
(e.g.
if
two
original position in the sensitivity table (e.g. if two or
or
more
more items
items are
are tied,
tied, they
they are
are ranked
ranked as
as to
to which
which was
was
higher
higher in
in the
the original
original table).
table).
This
This is
is one
one type
type of
feel free
free to
to revise
revise
accordingly.
accordingly.

Cleaned Data
1
2
3
4
5
6
7
8

Units Produced
Proportion of Product A
Price of Product A
Price of Product B
Gross Margin, Product A
Gross Margin, Product B
Operating Expenditure
Tax

\$272,869
\$272,869
\$31,894
\$31,894
\$212,625
\$212,625
\$60,244
\$60,244
\$212,625
\$212,625
\$60,244
\$60,244
\$182,000
\$182,000
\$38,944
\$38,944

Rank

Ranked data
1
2
3
4
5
6
7
8

Units Produced
Price of Product A
Gross Margin, Product A
Operating Expenditure
Price of Product B
Gross Margin, Product B
Tax
Proportion of Product A

Units Produced

Sensitivity

Price of Product A
Gross Margin, Product A
Operating Expenditure
Price of Product B
Gross Margin, Product B
Tax
Proportion of Product A
(\$200,000)

(\$100,000)

NPAT (\$k)

\$100,000

\$200,000

1
8
2
5
3
6
4
7

## Simple P&L Example

Assumptions
Units Produced
Proportion of Product A
Proportion of Product B
Price of Product A
Price of Product B
Gross Margin, Product A
Gross Margin, Product B
Operating Expenditure
Tax

Input
45,000
75.0%

Sensitivity
-

Used
45,000
75.0%
25.0%
\$100.00
\$75.00
45.0%
51.0%
\$1,300,000
30.0%

\$100.00
\$75.00
45.0%
51.0%
\$1,300,000
30.0%

Product A
33,750
\$100.00
\$3,375,000

Product B
11,250
\$75.00
\$843,750

\$93.75
\$4,218,750

(\$1,856,250)

(\$413,438)

(\$2,269,688)

\$1,518,750

\$430,313

\$1,949,063

Outputs
Revenue
Units
Price
Revenue
Cost Of Goods Sold
Gross Margin
Operating Expenditure
Net Profit Before Tax
Tax Expense
Net Profit After Tax

Total
45,000

(\$1,300,000)
\$649,063
(\$194,719)
\$454,344