This is a sensitivity analysis model for any manufacturing business or high volume seller of goods. It sensitizes a wide range of variables in three different base models. There are a total of 21 data tables included in the template. The 'What-if Analysis' feature under the 'Data' ribbon in Excel was utilized to build each table.
The primary outputs being solved for are:
- Break-even Revenue
- Profit in Period
- Profit Margin in Period
- Break-even Price
- Break-even Volume
The models that are used as a reference to create all these different sensitivity tables come in three different layers:
- Basic Price / Volume and Fixed Costs
- Price / Volume + Variable Costs and Fixed Costs
- Advanced Model with Wages, Labor Count, Variable Costs, Fixed Costs, and Efficiency per Labor
The first two model types have fairly simple tables that solve for the break-even revenue, break-even volume, and profit/loss based on varying prices, volumes, and total costs.
The 3rd model type is more advanced and includes assumptions for labor count, labor wages, variable and fixed costs, and goes deeper into the average hours in period per worker and the average volume per worker. You will then see data tables that sensitize those inputs in order to figure out break-even revenue, profit margin at various production levels and pricing / cost levels, and break-even pricing.
This type of analysis is helpful because it lets the user see various key financial metrics when holding certain variables equal. It gives a more complete idea of what needs to be true in order for a certain level of profit to happen or the required revenue / volume / price in order for a certain financial goal to be reached.
Yellow cells are adjustable in this Excel template. The data tables will update as variables are adjusted.
Similar Templates:
- Volume Discount Pricing Model
- Made to Order Manufacturing Financial Model
- Equipment Purchase Cost Benefit Analysis
- 10-Year Manufacturing Financial Model
- Cost per Unit Model
- Break-even Model
