Peter has attended:
Excel Advanced course
Excel Advanced - For Power Users course
Solver
I'm trying to use solver to work out how much up front sales to increase profitibility.
Income Up Front Sales £250,000
Rev Share £500,000
Total Income £750,000
Expenses Suppliers £100,000
Rent £65,000
Wages £250,000
Marketing £50,000
Total Expenses £465,000
Profit £285,000
If I select the cells to change (Up front sales, rent & marketing) then set constriants as >=£250000, <=£65000 & <=£50000 respectively when I click solve all figures change to either -£2,684,354,810,000 or £2,684,354,810,000
I am clearly doing something wrong here.
RE: Solver
Hi Peter
Thanks for getting in touch. I've replicated your Solver as described and attached it. You didn't specify the Objective so I assumed Profit was set to Max. I get similar results.
Are there any other formulas within the cells? Otherwise Solver is cold and logical about it, and simply drives up Sales as high as it can go until Excel hits its limit of numbers.
The cells will need to be more dependent on each other to generate a realistic answer, e.g. as Sales increase Suppliers Expenses increase by 5% per £100, or a calculation of that type.
Feel free to amend with more formulas and mail back to me at gary@stl-training.co.uk if you wish.
Kind regards
Gary Fenn
Microsoft Office Specialist Trainer
Tel: 0207 987 3777
Best STL - https://www.stl-training.co.uk
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GF Profitability Solver.xlsx
