Estimating Potential Profits

1
Estimating Potential Profits

• Today we will learn
• How to describe and use a spreadsheet model.
• How formula (rules) are used to make a
  spreadsheet dynamic and how to enter them.
• How we can change variables to answer what-if
  questions to forecast whether our new snacks will
  make a profit.

2
What is a spreadsheet?

• Some primary schools have used this model.
• Price per kilogram
• Two Minutes task, in pairs.
• How many words can you think of that are used
  when you are working with spreadsheets?
• What did you use spreadsheets for in your old
  school?

3
Profit forecast model

• Today we are going to investigate how a
  spreadsheet model can be used to forecast how
  profitable we expect our new snack brand to be.

4
Entering formulae

• We have been left an old model from the last new
  product Golden Googlers. We must enter the
  correct formulae and then enter the details for
  our new snacks, Green Grubs.
• All formulae begin with
• We use cell references rather than numbers e.g.
  D12
• Cells can be added using the autosum function (S)
• 10 minutes only.
• Load New snack Profit Model and enter the
  formulae in to the light blue cells.

5
Updating the data.

• Using the worksheet enter the new data for green
  grubs. Notice the formulae recalculate the
  answers making the accounts dynamic.
• Answer the questions from the worksheet in the
  cells d22 to d29.
• Our model marks the answers this is unusual.
  Normally we have to test the results ourselves.

6
Reviewing our learning

• What are the biggest advantages of using this
  spreadsheet model to forecast profits?
• Why are the formulae the most important part of
  the spreadsheet?

7
Homework

• Complete the worksheet Using formulae in
  spreadsheets
• add
• - Subtract
• Multiply
• / Divide

8
Have you

• Saved your work with a sensible filename?
• Logged off your computer sensibly?
• Left the workstation tidily, with chairs in the
  correct place?
• Put any print outs in the correct place?
• Entered any homework in your diary?