The "What If Analysis" functionality in Excel finds the best possible scenario based on available data points. Use it to find the best price to optimise revenue and profit.
1. Excel: Sensitivity Analysis with data tables
Write down your Data (fixed cost, cost/unit,
demand, price per unit). Apply formula to
calculate Revenue and Profit (using the
Data values)
STEP1- WRITE YOUR DATA
In the next column - one row above - copy
the Revenue or Profit formula from Step1
(copy and paste the cell's formula)
STEP3 - SET UP COLUMN 2
In a column, list the Input Values (for
instance, a series of alternative prices such
as a progressive increment of 20% on each
value)
STEP2 - SET UP COLUMN 1
Select all the cells delimited by the values
from step 2 and step 3. Select Data tab >
Forecast > What-If Analysis > Data Table.
Fill in the Data Table dialog box.
STEP4 - CREATE DATA TABLE