Part $2-$ What$-$If Analysis

Business problems occur daily that often require analysis. A "what$-$if analysis" is used to predict what can happen and is seen as a useful tool in all industries.

Create a simple what$-$if analysis business model using the What$-$if Model spreadsheet provided.

Follow these steps:

Add a variable that you can change for Quarterly growth in revenue.

Add a starting Revenue $=100$ for Quarter $1.$

Add the formula for Revenue in Quarter $2=$ Quarter $1$ Revenue$*(1+$ Growth rate$)$ where growth rate $=$ cell $F$$2.$

Add a starting Expense $=50.$

Copy the Quarter $1$ column formula for Revenue to Quarters $2,3,$ and $4.$

Use the formula: Profit $=$ Revenue $-$ Expenses to calculate the Profit for each quarter.

Add a column for Annual $($which is the sum of each line for Quarters$).$

Sum the total at the bottom for each column and at the end for each line.

Change the value of Quarterly revenue:

What if the revenue increases from $25\%$ to $50\%?$

What if the revenue decreases from $25\%$ to $10\%?$

How does it change the Total Profit for the Year in each case?