Ravindra BagaleCourses & study guides

11. What-If Analysis

11.1 Goal Seek

Goal Seek changes one input until a formula reaches a target value. Behind the scenes it tries value after value – an iteration (पुनरावृत्ती) process – until the result is close enough.

Steps in Excel – break-even orders per day

  1. Data › Forecast › What-If Analysis › Goal Seek…
  2. Set cell: B13 (Profit) › To value: 0 › By changing cell: B2 (Orders per day) › OK.
  3. Goal Seek shows the solution: 506.76 orders/day. Click OK to keep it or Cancel to restore 400.
  4. Round up for the business answer: about 507 orders per day to break even.

Check by hand: margin per order = 320 × 18% − 28 = ₹29.60; per month 30 × 29.60 = ₹888 per daily order; 4,50,000 ÷ 888 = 506.76 ✓.

Another question: at 400 orders/day, what AOV is needed to break even? Set B13 to 0 by changing B3 → about ₹363.89.

Ravindra Bagale's Tip

Goal Seek chya By changing cell madhe formula asleli cell dili tar Excel error deto – ti input cell (typed value) asayla havi. Khup students hi chuk kartat. Ani Goal Seek ek ch input badalto – don-teen inputs ekatra badalayche astil tar Solver vapra. Result kayam thevaycha nasel tar Cancel dabayla visru naka.

Practice task

Using Goal Seek find: the delivery cost per order that makes profit ₹50,000 at 400 orders/day, and the gross margin % needed to break even.