Explanation
A Data Table is useful not only for calculations but also for decision analysis.
Example
Suppose the profit analysis produces:
|
Quantity ↓ / Price → |
₹400 |
₹500 |
₹600 |
|
50 |
₹0 |
₹5,000 |
₹10,000 |
|
100 |
₹5,000 |
₹15,000 |
₹25,000 |
|
150 |
₹10,000 |
₹25,000 |
₹40,000 |
You can identify:
- Which combination produces higher profit
- How price affects profit
- How quantity affects profit
- Which combinations produce losses
- Possible business targets
Important
A Data Table is an analysis tool, not a forecasting guarantee. The results depend entirely on the assumptions and formulas in the model.
Practice
Review your Data Table and identify:
- Highest profit
- Lowest profit
- Best-performing combination in the model
- Combinations producing negative or zero profit