Decision support tools. Lecture 9: Preparation for Prac 2. Mathematical models. Decision variables Values that you can change E.g. selling price of your products, staff wages Uncontrollable variables Values that you can’t change E.g. rand/dollar exchange rate, income tax payable
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Lecture 9: Preparation for Prac2
You select these
You want to calculate these
You might be affected by these
Selling price = last year’s price * (1 + % increase in selling price)
Sales volume = last year’s sales * (1-0.5 * % increase in selling price) based on previous data
Profit = Sales volume * (Selling price – Cost price)
Data tab – What-If Analysis – Scenario Manager
N.B. changing cells should never contain formulas!
To view estimation results