If you have a final value based on different variables, by using the Scenario Manager tool you can see the impact of changing variables on final value without changing the actual data.
For example, you sell a product at $500 each and 60% of product price incurred as its cost.
But what if the cost rises to 65%? Or 70%, or even 80%? Each different percentage is a different scenario. You can use the Scenario Manager to create these scenarios.
Follow these simple steps to create different scenarios.
1- Go to the Data tab, select What-If Analysis from the Data Tools section.
2- From the appeared drop-down menu, select Scenario Manager.
3- In the Scenario Manager box, click Add to define the first scenario i.e. 65% cost. Specify cells that are variables. In our example, these cells are B1 and B2. Press OK.
4- Add values in the Scenario Values box and Press OK.
5- Similarly, add other scenarios of 70% and 80% cost.
6- To compare several scenarios, create a report that summarizes them on the same page. For this, select Summary in the Scenario Manager Box.