Sensitivity analysis with data tables in ExcelLet's learn how to do a sensitivity analysis with data tables in Excel. We have been assigned the task of analyzing the profitabilty of publishing Nelson Mandela's autobiography. Mr Nelson Mandela gets a royalty payment of $12 million. The fixed cost of producing the hardcover autobiography is $2 million. Th variable cost of producing each book is $4. The publisher makes a net gain of $11 on every unit produced. The marketing team expects a sale of 1 million copies of the hard cover version. The fixed cost of producing the paperback version is $100000. The variable cost will come to $1. The publisher calculates a net profit of $3 from this product. The paperback will sell 2 million copies. We need to determine the profit of the publisher when the sales of the hardcover version will vary between 100000 and 1 million copies and the ratio of the sales of paperback to hardcover varies between 1 and 3. The Excel training video below shows how this is done.
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