Using an Excel Data Table for CVP Analysis
Many times when analyzing a decision, you want to know all the potential profit amounts for differing levels of two key assumptions. For example, when I modeled closing bank branches, we would model rates of customers that left the bank and different levels of cost to replace their deposits.
You could create a table full of formulas to do this, but Excel has a tool to quickly fill in the table of data. In this video, I’ll walk you through how to set up your data to quickly see a massive range of potential outcomes of your decision.