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Today we will discuss sensitivity analysis in Microsoft Excel, focusing on different combinations of assumptions in a business scenario using Microsoft Excel 2016. The goal is to analyze various combinations of units sold and price points to determine profit. A financial model for a chair store is used as an example, with assumptions such as selling a thousand chairs per year for $150 each, with a cost of $50 per chair and fixed costs for rent and payroll. The analysis includes revenue, cost of sales, gross profit, fixed costs, and operating profit.
