Scenario Manager Example 1 Question
Using the Scenario Manager create 3 scenarios as shown below:
Best Case
- Inflation Rate- Selling Price (average for the 5 years) – 6.0%
- Inflation Rate- Costs (average for the 5 years) – 4.0%
- Units Sold Year 1 – 2000
- Units Sold Year 2 – 2500
- Units Sold Year 3 – 6000
- Units Sold Year 4 – 6500
- Units Sold Year 5 – 9500
Realistic
Inflation Rate- Selling Price (average for the 5 years) – 4.0%
Inflation Rate- Costs (average for the 5 years) – 5.0%
Units Sold Year 1 – 2000
Units Sold Year 2 – 2500
Units Sold Year 3 – 4000
Units Sold Year 4 – 4500
Units Sold Year 5 – 7500
Worst Case
Inflation Rate- Selling Price (average for the 5 years) – 3.0%
Inflation Rate- Costs (average for the 5 years) – 6.0%
Units Sold Year 1 – 2000
Units Sold Year 2 – 2500
Units Sold Year 3 – 2750
Units Sold Year 4 – 3000
Units Sold Year 5 – 3250
Run the Scenario Summary to see what happens to Profit After Tax for each year.
Create a chart that shows the different scenarios’ Profit After Tax.
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