Solutions to Excel Proficiency Exercises

This Solutions workbook contains suggested solutions to

the Excel Proficiency Exercise problems. For more
information see the document named "Excel Proficiency Exercises".
 Solutions to Excel Proficiency Exercises

Multiplication Table Problem: Mixed Addressing

The Problem
Create a multiplication table in the space below by entering a single formula in the upper
left-hand cell and copying that one formula to fill the rest of the table. You will need to
use mixed addressing in your formula.

1 2 3 4 5 6 7 8 9
1
2
3
4
5
6
7
8
9
10

The Solution
The formula should multiply the cell in the row that holds "1" with the cell in the column that holds "1".
But dollar signs in the formula must "fix" the row and column references without keeping the formula
from changing where necessary. For example, in the formula =B$27*$A28 the B$27 reference fixes row 27
while letting the column adjust in a relative manner. $A28 fixes column A while letting the row adjust relatively.

1 2 3 4 5 6 7 8 9
1 1 2 3 4 5 6 7 8 9
2 2 4 6 8 10 12 14 16 18
3 3 6 9 12 15 18 21 24 27
4 4 8 12 16 20 24 28 32 36
5 5 10 15 20 25 30 35 40 45
6 6 12 18 24 30 36 42 48 54
7 7 14 21 28 35 42 49 56 63
8 8 16 24 32 40 48 56 64 72
9 9 18 27 36 45 54 63 72 81
10 10 20 30 40 50 60 70 80 90
 Solutions to Excel Proficiency Exercises

10

ence fixes row 27

row adjust relatively.

10
10
20
30
40
50
60
70
80
90
100
 Solutions to Excel Proficiency Exercises

Olive Oil Pricing Problem: IF Statements & the SumProduct Function

IF statement syntax:
=IF(test-condition, value-if-condition-true, value-if-condition-false)

Calculate the cost of various quantities of olive oil.

We start with a simpler price schedule than in the problem so you can see how this works.

If the price schedule were: Cell Names

first 500 gallons at $ 23.00 First500 ='Olive Oil'!$C$10
additional gallons at $ 20.00 Price_for_500 ='Olive Oil'!$E$10
Price_for_Over500 ='Olive Oil'!$E$11
Quantity1 ='Olive Oil'!$C$15

Cost of 1600 gallons is $ 33,500.00 IF(Quantity1<=First500,

Cost of 483 gallons is $ 11,109.00 Price_for_500*Quantity1,
Cost of 2001 gallons is $ 41,520.00 First500*Price_for_500 + (Quantity1-First500)*Price_for_Over500)

For the price schedule in the problem:

first 500 gallons at $ 23.00 Nested IF statements & the SUMPRODUCT function:
next 500 gallons at $ 20.00
any additional gallons at $ 15.00
=IF(C27<=C$22,
E$22*C27,
Cost of 1600 gallons is $ 30,500.00 IF(C27<=SUM(C$22:C$23),
Cost of 483 gallons is $ 11,109.00 C$22*E$22+(C27-C$22)*E$23,
Cost of 2001 gallons is $ 36,515.00 SUMPRODUCT(C$22:C$23,E$22:E$23)+(C27-SUM(C$22:C$23))*E$24))

Alternately 1600 483 2001

gallons gallons gallons
For the price schedule in the problem: gals/price level gals/price level gals/price level
first 500 gallons at $ 23.00 500 483 500 MIN functions
next 500 gallons at $ 20.00 500 0 500
any additional gallons at $ 15.00 0 0 0 Nested IF statements
Cost $ 21,500.00 $ 11,109.00 $ 21,500.00 SUMPRODUCT functions
 Solutions to Excel Proficiency Exercises

Web Service Problem: Forecasting & Charting

Constant market
Customer base forecasts Customer Base Comparison
Growing market
Scenario A Scenario B
Total market potential 1,000,000 Initial total market 1,000,000 1,000,000
% remaining captured/period 2% Market size growth/period 1%
% remaining captured/period 2% 800,000

600,000
Period New customers Total customers Period Total market New customers Total customers
0 - - 0 0 0 400,000
1 20,000 20,000 1 1,000,000 20,000 20,000
2 19,600 39,600 2 1,010,000 19,800 39,800 200,000
3 19,208 58,808 3 1,020,100 19,606 59,406
4 18,824 77,632 4 1,030,301 19,418 78,824 -
5 18,447 96,079 5 1,040,604 19,236 98,060 123456789111111111122222222223333333333444444444455555555556
6 18,078 114,158 6 1,051,010 19,059 117,119 012345678901234567890123456789012345678901234567890
7 17,717 131,874 7 1,061,520 18,888 136,007
8 17,363 149,237 8 1,072,135 18,723 154,729
Period
9 17,015 166,252 9 1,082,857 18,563 173,292
10 16,675 182,927 10 1,093,685 18,408 191,700
11 16,341 199,269 11 1,104,622 18,258 209,958
12 16,015 215,283 12 1,115,668 18,114 228,072
13 15,694 230,978 13 1,126,825 17,975 246,047
14 15,380 246,358 14 1,138,093 17,841 263,888
15 15,073 261,431 15 1,149,474 17,712 281,600
16 14,771 276,202 16 1,160,969 17,587 299,187
17 14,476 290,678 17 1,172,579 17,468 316,655
18 14,186 304,865 18 1,184,304 17,353 334,008
19 13,903 318,767 19 1,196,147 17,243 351,251
20 13,625 332,392 20 1,208,109 17,137 368,388
21 13,352 345,744 21 1,220,190 17,036 385,424
22 13,085 358,829 22 1,232,392 16,939 402,363
23 12,823 371,653 23 1,244,716 16,847 419,210
24 12,567 384,220 24 1,257,163 16,759 435,970
25 12,316 396,535 25 1,269,735 16,675 452,645
26 12,069 408,605 26 1,282,432 16,596 469,241
27 11,828 420,432 27 1,295,256 16,520 485,761
28 11,591 432,024 28 1,308,209 16,449 502,210
29 11,360 443,383 29 1,321,291 16,382 518,591
30 11,132 454,516 30 1,334,504 16,318 534,910
31 10,910 465,425 31 1,347,849 16,259 551,169
32 10,691 476,117 32 1,361,327 16,203 567,372
33 10,478 486,595 33 1,374,941 16,151 583,523
34 10,268 496,863 34 1,388,690 16,103 599,626
35 10,063 506,925 35 1,402,577 16,059 615,685
36 9,861 516,787 36 1,416,603 16,018 631,704
37 9,664 526,451 37 1,430,769 15,981 647,685
38 9,471 535,922 38 1,445,076 15,948 663,633
39 9,282 545,204 39 1,459,527 15,918 679,551
40 9,096 554,300 40 1,474,123 15,891 695,442
41 8,914 563,214 41 1,488,864 15,868 711,311
42 8,736 571,949 42 1,503,752 15,849 727,159
43 8,561 580,510 43 1,518,790 15,833 742,992
44 8,390 588,900 44 1,533,978 15,820 758,812
45 8,222 597,122 45 1,549,318 15,810 774,622
46 8,058 605,180 46 1,564,811 15,804 790,426
47 7,896 613,076 47 1,580,459 15,801 806,226
48 7,738 620,815 48 1,596,263 15,801 822,027
49 7,584 628,398 49 1,612,226 15,804 837,831
50 7,432 635,830 50 1,628,348 15,810 853,641
51 7,283 643,114 51 1,644,632 15,820 869,461
52 7,138 650,251 52 1,661,078 15,832 885,294
53 6,995 657,246 53 1,677,689 15,848 901,141
54 6,855 664,101 54 1,694,466 15,866 917,008
55 6,718 670,819 55 1,711,410 15,888 932,896
56 6,584 677,403 56 1,728,525 15,913 948,809
57 6,452 683,855 57 1,745,810 15,940 964,749
58 6,323 690,178 58 1,763,268 15,970 980,719
59 6,196 696,374 59 1,780,901 16,004 996,723
60 6,073 702,447 60 1,798,710 16,040 1,012,762
 Solutions to Excel Proficiency Exercises

Pro-Forma Problem: Forecasting, Data Table, Goal Seek

Pro-forma income statement
Assumptions: Regular Lease automated machinery
Unit sales, first year 1,600
Unit price, first year $1,800
Unit manufacturing cost $1,000 $800 reduces by 20%
Yearly sales growth 100%
Yearly price fall 15%
Yearly decline in manufacturing costs 6% 6%
Marketing expense as % of revenue 14%
Yearly fixed cost $1,000,000 $2,000,000 increases by 100%
Discount rate 15%

Year 1 Year 2 Year 3 Year 4 Year 5

Unit sales 1,600 3,200 6,400 12,800 25,600
Unit price $1,800.00 $1,530.00 $1,300.50 $1,105.43 $939.61
Revenue $2,880,000.00 $4,896,000.00 $8,323,200.00 $14,149,440.00 $24,054,048.00
Unit manufacturing cost (regular) $1,000.00 $940.00 $883.60 $830.58 $780.75
Unit manufacturing cost (lease) $800.00 $752.00 $706.88 $664.47 $624.60
Total manufacturing cost $2,600,000.00 $4,008,000.00 $6,524,032.00 $10,505,180.16 $17,989,738.70
Lease? no no yes yes yes
Marketing expense $403,200.00 $685,440.00 $1,165,248.00 $1,980,921.60 $3,367,566.72
Profit before tax ($123,200.00) $202,560.00 $633,920.00 $1,663,338.24 $2,696,742.58

Net Present Value (NPV): $2,754,623.43

Break-even analysis with data table

(This could also be done using goal seek.) First year profit Second year profit
($123,200.00) $202,560.00
1300 -287600 -22920
1350 -260200 14660
1400 -232800 52240
1450 -205400 89820
1500 -178000 127400
1550 -150600 164980
1600 -123200 202560
1650 -95800 240140
1700 -68400 277720
1750 -41000 315300
1800 -13600 352880
1850 13800 390460
1900 41200 428040
 Solutions to Excel Proficiency Exercises

Data Relationship Problem: XY (Scatter) Plot

M ach in es M in u tes
Machines Minutes Line Plot Machines
7 97 Minutes
6 86 XY Plot 140
5 78 140 120
1 10 120
5 75 100
100
4 62
80
7 101 80

3 39 60 60
4 53
40 40
2 33
20
8 118 20
5 65 0
2 25 0 1 2 3 4 5 6 7 8 9 0
5 71 Machines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
7 105
1 17 Meaningful representation of the data, with A misleading representation of the data.
4 49 machines values along the X axis and Excel chooses a scale from 1 to 18 for the X axis
5 68 minutes values along the Y axis. since there are 18 pairs of data. It scales the Y axis
to accommodate the largest data value (118), then
plots both machines and minutes separately.