EXERCISES: Excel Scenario Manager

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 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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