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Now, prices.
Here's more discussion with your class.
I want you to watch what happens though.
We've got the default Business Plan Pro is set up
so that whatever price you put into the first month
(and I better scroll over and get to the first month)
is going to repeat throughout, which is a data entry help.
So $2 for Coffee, $10 for Lunch,
$2 for Beverage and $5 for Other
gives us a Sales Forecast for the first year.
And now let's scroll to the right
and fill it out for the second and third year.
And what you see here is, the first year obviously simple math.
You look at the formula up here, your sum C19 to N19, in other words,
for the whole 12 months, you have 15,270 units of coffee as your assumption.
Now, here I could just do = this,
or to make it more interesting let's assume that we grow, although slowly,
16,000, 17,000 in Coffee.
And in Lunches we have to be careful,
our total capacity we've already figured out, would be 1,320 per month
times 12. So 1,320 x 12 would be total capacity
but we can't do total capacity.
So lets do .9, that shows us some nice growth.
And lets just =1,320 x .95,
we get closer to capacity, this is good.
And I think I'll pick up my assumption here, I'm going to do Edit, Copy
(let me see there was a hot key there).
And then I'm going to do Edit, Paste Special, Values.
Whoops no, Formulas, sorry.
And click, and that will give us the same formula.
And you'll see this is why the dollar signs.
Notice that in every cell here it's always B21, it's not moving as the M20 will move
and in the next it will be times N20 so you see that's moving.
But the absolute cells aren't moving. That's because of the $B$21,
which is what we call an absolute reference.
And I did that by pressing F4 but you can also type it.
So don't want to get too complicated here. Let's do 2,500 and 3,000.
And now we have a Sales Forecast.
If I go over here and I click the Outline
I can go to my Sales Forecast and I can see there's my monthly sales for the year
and there's my Sales by Year, so I'm going from $180 to... I've got a problem here.
Notice how quickly... I didn't do that on purpose but it's a good illustration.
What's wrong with 2011?
Let's just go see what's wrong 2011.
Oh, I see.
This should be B21 times that,
so B21 times AD20 and this is B21 times AE20.
So my problem is up here.
And it's 1,320 times 0.95 times 12, because it was monthly.
And then that generates a much nicer chart Sales per Year
and you get the bird's eye view of what's going on.
There's a Sales Forecast, almost finished.