Question

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 analysisb) Qualitative analysisc) Sensitivity analysisd) Goal-seeking analysise) A simulation.

Answer 1

Answer:

D) Goal-seeking analysis

Explanation:

Goal-seeking analysis can be defined as finding the correct input values given a fixed output value, i.e. you know the answer but you must find how to get to it.

During this analysis, Shawn must change an input variable (product quantity since product price is known) in order to cover estimated total expenses.

Answer 2

Answer:

(D) goal seeking analy

Explanation:

Shawn would like to know how many units he needs to sell at that price to cover his expenses, meaning he has a goal of covering his expenses.

Goal seeking analysis falls under a kind of what if analysis tools.

Goal Seeking involves taking an expected result or outcome (in this case Shawn's estimated expenses and costs) and determining possible input values ( or how many units Shawn needs to sell) that would produce his expected result (to cover his expenses).