Its use is not limited to direct calculation purposes, but can be applied in cascading computations.
As another example, we have additional fields: Cost per unit, Total cost, and Income.
To give you an idea:
- Cost per unit: A fixed number indicating how much each unit costs.
- Costs: Total cost. This is derived by multiplying the number of units by the cost per unit.
Cell B9 = B3*B8
- Income: Calculated field. This net income is obtained by subtracting the Total Cost from the Revenue.
Cell B11 = B5-B9
If we want to figure out how many units need to be sold in order to achieve an Income of 2100, the Goal Seek function can be used as well.
To do this:
- Go to the Data tab
- Under the Forecast group, click on What-if Analysis.
- Select Goal Seek
- Set the parameters as follows:
- Set cell: Cell B11
- To value: 2,100
- By changing cell: $B$3
- Select OK.
The Goal Seek Status window will popup and indicate that it has found a solution.
The Units sold figure is now 913.
This means that 913 units have to be sold to achieve an income of 2100.
To accept the results, click on OK.
If Cancel is clicked, it disregards the result and reverts back to the original figures before the Goal Seek function was used.