Estimating Potential Profits Today we will learn How to describe and use a ‘spreadsheet model’. How ‘formula’ (rules) are used to make a spreadsheet ‘dynamic’; and how to enter them. How we can change variables to answer ‘what-if’ questions to forecast whether our new snacks will make a profit.

What is a spreadsheet? Some primary schools have used this model. Price per kilogram Two Minutes task, in pairs. How many ‘words’ can you think of that are used when you are working with spreadsheets? What did you use spreadsheets for in your old school?

Profit forecast model Today we are going to investigate how a spreadsheet model can be used to forecast how profitable we expect our new snack brand to be.

Entering formulae We have been left an old model from the last new product ‘Golden Googlers’. We must enter the correct formulae and then enter the details for our new snacks, ‘Green Grubs’. All formulae begin with = We use cell references rather than numbers e.g. D12 Cells can be added using the autosum function ( Σ) 10 minutes only. Load New snack Profit Model and enter the formulae in to the light blue cells.

Updating the data. Using the worksheet enter the new data for ‘green grubs’. Notice the formulae recalculate the answers making the accounts ‘dynamic’. Answer the questions from the worksheet in the cells d22 to d29. Our model ‘marks’ the answers; this is unusual. Normally we have to test the results ourselves.

Reviewing our learning What are the biggest advantages of using this spreadsheet model to forecast profits? Why are the formulae the most important part of the spreadsheet?

Homework Complete the worksheet ‘Using formulae in spreadsheets’ + add - Subtract * Multiply / Divide

Have you…… Saved your work with a sensible filename? Logged off your computer sensibly? Left the workstation tidily, with chairs in the correct place? Put any print outs in the correct place? Entered any homework in your diary?