DATA TABLES

Sample Revenue-Cost Model

Price (Rs.) 15.00

Quantity sold 2,000
Revenue

Variable Cost (Cost of Material, Labor) -

Fixed Cost (Rent, Salary etc) 20,000
Total Cost

Profit= Revenue less Total Cost

Assumption: Variable cost as a % of Revenue 50.0

 Sample Revenue-Cost Model

Price (Rs.) 15.00

Quantity sold 2,000
Revenue 30,000

Variable Cost (Cost of Material, Labor) 15,000

Price (INR)
Fixed Cost (Rent, Salary etc) 20,000
Total Cost 35,000

Profit= Revenue less Total Cost (5,000)

Assumption: Variable cost as a % of Revenue 50.0

 Quantity Sold (Units)

2,750 3,000 3,250 3,500 3,750

10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
14.5
15.0

Note: Sensitivity analysis of two variables (Price & Qty sold) on Profit
Techniques used:
1 Data Table
2 Conditional Formatting
3 Buttons
4,000 4,250
Goal Seek - Case 1

DISC % 10.00%

Client Name (Kolkata, India) Location Amt. Rs. Discount Amt. Rs.
ABN AMRO Shantiniketan 3,660.0
ABS Consultant Pvt Ltd Stephens House 6,840.0
ABS Finance Computer & Consultancy Siddha Point 1,740.0
Access & Sniper Shantiniketan 3,660.0
Accord Global Logistics Pvt. Ltd. Shantiniketan 4,290.0
Apeejay Surrendra Corporate Services Stephens House 6,310.0
Apeejay Surrendra Land Pvt. Ltd. Apeejay House 2,840.0
Apeejay Surrendra Overseas Ltd. Apeejay House 9,320.0
Apple Electronics Pvt. Ltd. Shantiniketan 8,380.0
ARCHII System Pvt. Ltd. Shantiniketan 9,840.0
-
 Goal Seek - Case 2

Revenue-Cost-Profit Analysis

Price (Rs.) 10.00

Qty Sold (Nos.) 600
Revenue (Rs.) 6,000 Break Even Pt Sales Qty?

Less: Fixed Cost (Rs.) 1,000

Variable Cost (Rs.) 3,000

Profit (Rs.) 2,000

Variable Cost as % of Sales 50.00

Goal Seek - Case 3

Revenue-Cost-Profit Analysis

Price (Rs.) 10.00

Qty Sold (Nos.) 600
Revenue (Rs.) 6,000

Less: Fixed Cost (Rs.) 1,000

Variable Cost (Rs.) 3,000

Profit (Rs.) 2,000 At what level of Variable Cost, P/L will be Nil?

Variable Cost as % of Sales 50.00

P/L will be Nil?
 SCENARIO MANAGER
Changing Inputs
Revenue-Cost-Profit Analysis Price (Rs.)
Base 10
Price (Rs.) 10.00 Best 12
Qty Sold (Nos.) 600 Worst 8
Revenue (Rs.) 6,000

Less: Fixed Cost (Rs.) 1,000

Variable Cost (Rs.) 3,000

Profit (Rs.) 2,000

Variable Cost as % of Sales 50.00

Changing Inputs
Qty Sold (Nos.)
600
1000
500
 Decision
Decision Variables
Variables Variable
Variable Bounds
Bounds
In
In this
this example
example you you need
need to
to decide
decide the
the optimimal
optimimal Since
Since we
we won't
won't be
be making
making aa negative
negative number
number ofof
mix
mix ofof pallets
pallets to
to produce.
produce. AsAs aa result,
result, we
we have
have set
set pallets,
pallets, we've
we've set
set each
each have
have aa lower
lower bound
bound of
of 0.
0.
cells These
These lower
lower bounds
bounds appear
appear inin the
the Model
Model Task
Task Pane
Pane
cells C16:E16
C16:E16 as as our
our Decision
Decision Variables
Variables and
and have
have
created as
as Number_to_build
Number_to_build >= >= 0.
0.
created thethe defined
defined name,
name, Number_to_build.
Number_to_build.
Alternativey,
Alternativey, wewe could
could set
set Assume
Assume Non-Negative
Non-Negative toto
True
True on
on the
the Engine
Engine tab
tab of
of the
the Task
Task Pane.
Pane.
Panel Type
A B C D
Pallets 23 15 39 0 Total Profit Our
Our objectiv
objectiv
Profit $450 $1,150 $800 $400 As
As aa result,
result, w
Objective
Objective loclo
Total_profit
Total_profit
Resources Required per Pallet Type Used Available
Glue 50 50 100 50 5,800
Pressing 5 15 10 5 730
Pine Chips 500 400 300 200 29,200
Oak Chips 500 750 250 500 60,500
 Objective
Objective Function
Function
Our
Our objective
objective inin this
this model
model isis to
to maximize
maximize profit.
profit.
As
As aa result,
result, we
we have
have chosen
chosen to to maximize
maximize our
our
Objective
Objective located
located in in cell
cell G17
G17 andand named
named this
this cell
cell
Total_profit.
Total_profit.

Constraints
Constraints
The
The example
example model
model contains
contains four
four constraints
constraints which
which
limit
limit the number of parts or pressing time
the number of parts or pressing time used
used per
per
product
product to
to the
the amount
amount available.
available. In
In the
the Model
Model tab
tab of
of
the
the Task
Task Pane,
Pane, these
these constraints
constraints appear
appear as:
as:
Number_Used
Number_Used <= <= Number_Available.
Number_Available.