Shawn is doing some budgeting for his new start-up business. He has developed a budget in Excel using formulas, as he was taught to do in college. He is fairly confident about his estimated expenses. He is also sure that his current price is the best price he can get for his product. He would like to know how many units he needs to sell at that price (and his cost per product from his supplier)to cover his expenses. Shawn will be doing:
A)What-if analysis
B)Qualitative analysis
C)Sensitivity analysis
D)Goal-seeking analysis
E)A simulation.

Question

Quizplus · Accepted Answer

Goal-seeking analysis is used to determine what inputs are necessary to reach a desired output. In this scenario, Shawn wants to determine how many units he needs to sell to cover his expenses, given his current price and cost per product. Therefore, he would use goal-seeking analysis to determine the necessary sales volume to break even.

Shawn Is Doing Some Budgeting for His New Start-Up Business