BIS 155 Course Great Wisdom / tutorialrank.com BIS 155 Course Great Wisdom / tutorialrank.com | Page 38

Summary. Use formulas in these cells because you will wish to
change the values in your assumption section to see how these
changes impact the Net Income.
Total Revenue should refer to the Total Revenue cell (B14).
Total Expense is Variable Costs + Fixed Costs.
Net Income is Total Revenue - Total Expense
C. Rename the file according to the file naming conventions as
shown at the top of this page. Your Income Statement should look
like the one below, but it is important that you have created
formulas rather than typing in amounts. As you perform What-If
analysis, the formulas will be recalculated to show you the results of
changing assumptions.Image Description
STEP 2: Analyze the Difference in Total Expenses and Net Income
When You Vary the Number of Students
Adair desires to look at the differences in her net income depending
on the number of children she cares for. Her house will
accommodate no more than 15 children, and she believes she should
have no less than six children. Because you are varying only one of
your assumptions, you can develop a one-variable data table. A onevariable data table will allow you to see the impact of changing one
variable—and see the results on multiple outputs.
A. Set up the Data Table to display number of children from 6
through 15. Add a descriptive title to the Data Table.
B. Show the Expenses and Net Income for each change in number
of children.