Question

Create a goal seek analysis to determine what the price should be to generate demand of 2,625,000 tablets given that the supplier contract is $75,000,000 and the advertising budget is $35,000,000 (you may need to change these values). Complete the analysis using the Goal Seek tool. As Goal Seek does not store your entries; enter the "Set cell", "To value", and "By changing cell" elements of your analysis in cells C25, C26, C27, respectively, for grading purposes. Enter the resulting price in cell C29.

Answer 1

The required values for the goal seek analysis are shown in the following image:

The following image shows the required entries that are to be filled in the excel sheet:

Explanation:

The goal seek tool in excel is used to change a value in the calculation to get the desired results.

In the given question, it is required to get the demand of tablets to reach the value of 2,625,000 by changing the price.

The value that is to be inserted in the “Set cell” field is the cell number which shall contain the desired result. This cell must have a formula having the cell which is inserted in the “by changing cell” field.

In the given question, the value of demand is desired.

The cell value which stores the calculated demand is C14 is and hence it is inserted in the field “Set cell”

The “to value” field of the goal seek tool is used to set the desired result.

Here, 2,625,000 is the value that is desired and hence it filled in the “To value” field.

The “By changing cell” field of the goal seek tool, represents the cell whose value is to be changed for getting the desired results.

Here, the value of price is required to be changed to get the required demand, thus the value that should be inserted in the “By changing cell” of the goal seek tool is C3, which represents the price.

The required demand is achieved by changing the price to $290.