Build the ProfitMatrix and Dashboard, then test your recommendation under different conditions.
Complete Your ProfitMatrix and Dashboard
In Phase 2, you built the TargetProfit and PriceSensitivity sheets. Now you will create the ProfitMatrix to see how profit changes across both price AND volume simultaneously, and the Dashboard to summarize your final recommendation. The Dashboard is the most important sheet for your presentation in Lesson 10.
The ProfitMatrix shows profit for every combination of price and volume. This is your most powerful tool for understanding risk — it shows what happens if things go better or worse than expected.
Step 1: Set Up Your Grid
- Choose 3-4 prices to test (include your recommended price)
- Choose 3-4 volume levels (below expected, expected, above expected)
- Create a table with prices as columns and volumes as rows
Step 2: Calculate Profit for Each Cell
Use this formula for each cell:
Profit = (Price × Volume) - (Fixed Costs + Variable Cost per Unit × Volume)
Example: If Price = $45, Volume = 100, Fixed Costs = $2,000, Variable Cost = $20/unit:
Profit = ($45 × 100) - ($2,000 + $20 × 100) = $4,500 - $4,000 = $500
Step 3: Highlight Key Zones
- Green zone: Cells where profit meets or exceeds your target
- Yellow zone: Cells where you make some profit but miss your target
- Red zone: Cells where you lose money
Step 4: Answer These Questions
- How much can volume drop before you lose money at your recommended price?
- What happens to profit if a competitor forces you to lower your price by $5?
- Which price-volume combinations are safest for your business?
Common mistake: Mixing up the formula order. Always calculate total revenue first (price × volume), then subtract total costs (fixed + variable × volume).
The Dashboard is the sheet your audience will look at first during your presentation. It should be clean, clear, and tell the story of your recommendation in one page.
Section 1: Business Summary
- Business name and type (from your scenario card)
- Your team name
- One sentence describing your business situation
Section 2: Key Numbers
- Recommended price
- Expected monthly volume
- Projected monthly profit
- Break-even units
- Capacity utilization percentage
Section 3: Recommendation Statement
Write your full claim-evidence-risk statement here (you will refine this in Phase 4):
- Claim: What price do you recommend?
- Evidence: Cite at least 3 numbers from your workbook
- Risk: What is the main downside or weakness?
- Close: Why is this still the best choice?
Section 4: Sensitivity Summary
Briefly summarize what your ProfitMatrix shows:
- Best-case scenario (high price, high volume)
- Worst-case scenario (low price, low volume)
- Most likely outcome based on your analysis
Design tip: Keep the Dashboard clean and readable. Use bold headers, clear spacing, and avoid clutter. Your audience should be able to understand your recommendation in 30 seconds.
- ProfitMatrix sheet has a complete price-by-volume grid with profit calculations
- ProfitMatrix sheet has key zones highlighted (green/yellow/red)
- Dashboard sheet has all four sections: Business Summary, Key Numbers, Recommendation, Sensitivity Summary
- Dashboard sheet cites at least 3 specific numbers from your workbook
- Both sheets have clean labels and professional formatting
Before moving to Phase 4, review your Dashboard against these criteria:
- Can someone understand your recommendation in 30 seconds?
- Are all numbers clearly labeled with units ($, units, %)?
- Does your recommendation statement include claim, evidence, risk, and close?
- Is the formatting clean and professional?
- Would a stakeholder (investor, teacher, customer) find this convincing?