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AJD
25-08-2011, 09:13 PM
Hi
I am currently undertaking some study and am struggling with the concept of Goal Seek.
I have a total of about $145,000 in cell D50, and I want to change a markup rate which I have in B6 (not a formula) so that the D50 cell contains $1.00.

I have tried to use the goal seek in Excel (2010) but I seem to get a hideous number of negative thousands and the amount in D50 remains the same i.e does not change to $1.00.

I am relatively new to this concept so any advice offered would be greatly appreciated.
Thanks

TeejayR
27-08-2011, 07:59 AM
Generally what Goal Seek is designed to do is change a factor so you can derive a specified answer e.g. if you had a Car you bought for $5,000 and you wanted to make 10% on it the answer would be $5,500.

You can then use Goal Seek to let you know what the Mark up percentage would need to be if you wanted to sell the car for $6000.

What you appear to be doing is asking Goal Seek what the mark up would be if you wanted to turn $145,000 into $1. Goal seek gives me the the answer of -99.9993%. When you are reducing any number to 1 you are effectively subtracting the number from itself.