Two Variable Data Table

What is it?

This template shows how to vary both the average price and sales volumes for a new location to estimate the revenues and gross profit of the location.

Why is it important?

There is a lot of uncertainty when projecting how much you can sell and what prices you can charge at a new location. This allows you to see a wide range of potential profits based on a range of prices and sales volumes. Decision-makers can see the potential outcomes for the location, high likely those outcomes are, and whether they are comfortable with the range of potential outcomes.

When and how would you use it?

This is a good analysis to do when opening or closing locations. For examples of how to use a data table, watch the Using an Excel Data Table for CVP Analysis video or the lesson on two-variable analysis in the Analyzing New Location course.

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