How To Graph Cost Revenue And Profit Functions In Excel

The excel profit margin formula is the amount of profit divided by the amount of the sale or c2 a2 100 to get value in percentage.

How to graph cost revenue and profit functions in excel. Since profit maximization occurs at a point at which the marginal revenue mr equals marginal cost mc we can verify that it is indeed maximized at q 10 by solving the marginal revenue and marginal cost functions which are obtained by differentiating the total revenue and total cost functions with respect to q. Identify the fixed and variable costs. This video is for my council for economic education lesson with the same title. For our simple lemonade stand the profit function would be.

Profit 0 50 x 50 00 0. This shows how to use excel to graph total revenue and total cost curves. Profit margin formula in excel is an input formula in the final column the profit margin on sale will be calculated. For a simpler graph requiring less typing you don t need to specify dates or other information about the revenue and expenses.

Calculating the profit function. Evaluate cost demand price revenue and profit at q 0 text find all break even points. Find the revenue and profit functions. Using the trend function you regress the revenue estimates in j3 through j33 onto the costs in k3 through k33 and apply the result to the estimated cost in k35.

The excel comparison chart is to compare the multiple subcategory values under one main category. Add a textbox and label to identify the first break even point. The profit function is just the revenue function minus the cost function. You can simply have a single column for each category starting in column a and using column b.

Omit the process of entering reference data in column a and just type the financial details. C 50 0 10 x lemonade 0 50 x cookie. If every cookie cost 50 cents to make our revenue function becomes. Graph the profit function over a domain that includes both break even points.

Profit r c.