Question

Madhu Patel is a sales analyst for Four Winds Energy, a manufacturer of wind energy products, in San Antonio, Texas. Madhu is developing a workbook to analyze the profitability of the company's wind turbines. She asks you to help her analyze the sales data to determine how the company can increase profits.

Go to the Income Analysis worksheet, which lists the revenue and expenses for the Boreas wind turbine and calculates the net income. Madhu wants to compare the financial outcomes for varying amounts of turbines sold and identify the number of units the company needs to sell to break even. Madhu has already entered formulas in the range E5:H5 to extract data from the income analysis in the range B4:C26. In the range E5:H14, create one-variable data table using cell C5 as the Column input cell, to calculate the revenue, expenses, and net income based on units sold.

Answer 1

To calculate the revenue, expenses, and net income based on units sold, you can create a one-variable data table.

Step-by-step explanation:

To calculate the revenue, expenses, and net income based on units sold, you can create a one-variable data table. In this case, the data table will use cell C5 as the column input cell. Here are the steps:

1. Select the range E5:H14
2. Go to the Data tab and click on What-If Analysis
3. Choose Data Table
4. In the Column input cell field, enter C5
5. Click OK

The data table will automatically calculate the revenue, expenses, and net income for different amounts of turbines sold. This will help analyze the financial outcomes and determine the number of units the company needs to sell to break even.

Answer 2

To create a one-variable data table for analyzing the profitability of the Boreas wind turbine, Madhu Patel should utilize cell C5 as the Column input cell. This data table will calculate the revenue, expenses, and net income based on varying units sold, encompassing the range E5:H14 in the Income Analysis worksheet of the workbook.

Step-by-step explanation:

Madhu Patel's aim to enhance the company's profits via the analysis of sales data requires a methodical approach. The creation of a one-variable data table allows for a comprehensive assessment of different scenarios based on varying units sold. By utilizing cell C5 as the Column input cell, the data table will systematically calculate the revenue, expenses, and net income across the range E5:H14. This facilitates an overview of how different quantities of wind turbines sold affect the company's profitability.

In the Income Analysis worksheet, the predefined formulas in the range E5:H5 extract crucial data from the Boreas wind turbine's revenue, expenses, and net income, sourced from cells B4:C26. The one-variable data table, positioned within the range E5:H14, provides a clear visualization of the financial outcomes for diverse quantities of units sold.

This analysis becomes instrumental in identifying the break-even point – the quantity of wind turbines the company needs to sell to cover its expenses and achieve a net income of zero. Madhu's initiative in employing this data table allows for a comprehensive evaluation of profitability, aiding the company in making informed decisions regarding sales strategies and potential revenue generation.