Information Technology IT – 9 Modelling | e-Consult

To use Goal Seek, I would set up the spreadsheet as described in Question 1. Then, I would use the Goal Seek function to find the number of units sold required to achieve a profit of £50,000 for each campaign.

1. Set up the spreadsheet: Ensure the spreadsheet contains the same cost and revenue calculations as in Question 1.
2. Identify the Target Cell: Identify the cell containing the profit calculation (e.g., E1). This is the cell we want to reach a value of £50,000.
3. Use Goal Seek: Go to the "Data" tab in the spreadsheet program and select "What-If Analysis" -> "Goal Seek".
4. Specify the Target Cell and Target Value: In the Goal Seek dialog box, enter the cell containing the profit calculation (e.g., E1) in the "Set cell" field and enter 50000 in the "To value" field.
5. Specify the Changing Cell: Specify the cell containing the number of units sold (e.g., B1) in the "By changing cell" field.
6. Click OK: The spreadsheet program will automatically adjust the value in the "By changing cell" (B1) until the "Set cell" (E1) reaches the target value (50000). The value in B1 will then display the number of units required.
7. Results: The Goal Seek function will return the number of units required for each campaign. For Campaign A (10% increase), the required units would be approximately 7,777.78. For Campaign B (15% increase), the required units would be approximately 6,666.67.

Note: The exact values may vary slightly depending on the spreadsheet program used.