Explanation $($supplement to posted slides$)$ of the Lemonade Goal Seek Problem Demonstrated in Class $($use Excel spreadsheet to follow$)$

Profit$-$this was the Set Cell mentioned in slides. Set Cells must have a formula in the cell to work. If you click on Profit cell, you will see formula that gives us the profit number.

The formula for this cell $($Set Cell needs formula$)$ is Profit minus Fixed Cost minus Variable Cost. The cell addresses for these three terms are $$named ranges$$ rather than Excel addresses which helps identify which terms are part of the formula. The actual cell addresses from the sheet are D$5-$D$4-$D$6.$

Demand$-$this was the Changing Cell that is needed. $($i$.$e$.$: How many glasses of Lemonade will we need to sell to break even$).$

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HINT$-----$What you will need to do for the Assigned Homework Problem

While there were seven terms $($categories$)$ listed for the Lemonade Goal Seek problem, there are only four terms $($categories$)$ needed for the Goal Seek HW problem.

Those four terms are: Years, Yearly Contribution, Rate of Return and Available in $40$ years. Some of these four terms are known $($given$).$

$$ The $$Available in $40$ years$$ entry is your $$Set Cell$.$

$$ This set cell needs a formula.

You should build a financial formula for this Set Cell using the FV$-$Future Value function in Excel. IMPORTANT$-$ You will need to input a cell address $($rather than a direct term$)$ for one of your inputs in the FV function.

Please provide a $3-4$ sentence explanation of what you did in the Goal Seek problem and what terms Goal Seek was using to determine your answer. Points for this portion will be awarded on your level of detail in your answer $($i$.$e$.$: just mentioning the actual numbers you put in the cells will receive minimal point award$).$