Which What-If Analysis Tool Is Best to Determine the Number

question 62

Multiple Choice

Which what-if analysis tool is best to determine the number of t-shirts to sell in order to earn $500 with no constraints?

• A)Goal Seek
• B)Solver
• C)Scenario Manager
• D)Two-variable data table

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Definitions:

Minimum Required Rate

The lowest rate of return or discount rate acceptable for a project or investment to proceed.

Residual Income

Residual Income (RI) is the net income an organization generates beyond the minimum rate of return on its investments.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate income, including both current and long-term assets.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from its total revenue, excluding taxes and interest.