![]() Retail price is $25.00 Selling discount is 10% Revenue is $11,250 ![]() The following details can be found in the current model: Consider a very simple model that determines total net revenue by adding the quantity of units sold, the retail price, and a discount. Let's first examine a straightforward experiment to show how Goal Seek functions. ![]() When performing sensitivity analysis in financial modelling, the tool is quite helpful. Goal Seek can calculate the number of units that must be sold in order to generate $1 million in revenue, for instance, if the formula for revenue is equal to the number of units sold times the selling price. Back-solving is effectively done by the function by feeding in guesses and trying different solutions until it finds the right one. By altering an underlying assumption, the Goal Seek Excel function (also known as What-If-Analysis) allows one to solve for a desired output.
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