Explanation
Goal Seek works backward from a desired result. You provide the result you want, and Excel calculates the input value required to achieve it.
Example
Suppose:
- Selling Price = ₹1,000
- Variable Cost = ₹600
- Fixed Cost = ₹40,000
- Quantity = 100
Profit:
=(Selling Price-Variable Cost)*Quantity-Fixed Cost
If you want ₹1,00,000 profit, Goal Seek can determine the required quantity.
Steps
Data → What-If Analysis → Goal Seek
Set:
- Set cell: Profit
- To value: 100000
- By changing cell: Quantity
Practice
Find the quantity required to achieve ₹1,00,000 profit.