Math for Business Operations

Applied Accounting with Excel

UNIT06 - Lesson 4

Goal Seek for Target Profit Scenarios

45 minutes
Lesson Overview

Lesson Focus

Master Goal Seek functionality for reverse engineering pricing decisions

Key Unit Objectives

Enduring Understandings:

  • Pricing decisions require balancing profitability with market competitiveness
  • Cost-Volume-Profit relationships govern business viability and strategic planning
  • Data-driven analysis provides objective foundation for subjective business decisions
  • Sensitivity analysis reveals business vulnerabilities and opportunities

Lesson Activities

Activity 1: Goal Seek Introduction
10 minutes

Demonstrate Set Cell / To Value / By Changing Cell using the CVP model

Details:

  • Find required price for $50,000 profit
  • Find required units to break even at competitor price
  • Discuss verification and business-sense checks
Activity 2: Guided Practice
25 minutes

Students run multiple target-profit and break-even scenarios

Details:

  • Conservative, base, and stretch targets
  • Document assumptions and results for later presentation
  • Troubleshoot common Goal Seek pitfalls
Activity 3: Reflection
10 minutes

Capture key takeaways and how Goal Seek integrates with CVP model

Details:

  • Write 2–3 takeaways from Goal Seek practice
  • Note one common pitfall and how to avoid it
  • Identify how Goal Seek outputs feed back into the CVP model
Required Materials
  • /resources/unit06-goal-seek-practice.csv
  • /resources/unit06-goal-seek-template.csv
  • Goal Seek step-by-step guide
Differentiation Strategies

For Struggling Students

  • • CVP Templates: Pre-built model structures with guided formula entry
  • • Visual Calculators: Step-by-step markup vs. margin calculation guides
  • • Peer Partnerships: Pair with students strong in Excel or business analysis
  • • Alternative Assessment: Focus presentation on business insights rather than technical details

For Advanced Students

  • • Advanced Modeling: Incorporate seasonality and demand elasticity into CVP models
  • • Leadership Roles: Facilitate peer critique sessions and support struggling teams
  • • Extended Analysis: Research actual competitor financial statements for deeper insights
  • • Presentation Enhancement: Create interactive Excel dashboards for town hall debate

For English Language Learners

  • • Business Vocabulary: Glossary of CVP and pricing terms with visual definitions
  • • Formula Explanations: Mathematical concepts explained with universal symbols
  • • Cultural Context: Discussion of pricing practices in different economic systems
  • • Collaborative Support: Mixed-language teams with peer translation assistance