Answer :
Final answer:
The question asks for using Excel's Solver feature to find optimal selling prices that would result in target net commission amounts for a hypothetical scenario, demonstrating the application of Solver in financial modeling to achieve specific financial goals. It involves iterative runs with different targets and saving these outcomes as scenarios for comparison.
Explanation:
The question involves using Microsoft Excel's Solver feature to find target net commission amounts for a hypothetical scenario involving PHRE (presumably a real estate transaction or similar). The steps involve setting up Solver problems with specific objective cells and constraints, and then saving the outcomes as scenarios. It essentially illustrates how Solver can be applied in financial modeling or business contexts to find optimal solutions under given constraints. Here, Solver manipulates a key cell (selling price or commission rate) to achieve target commission values.
Firstly, restoring original values between iterations is crucial to ensure that each Solver run starts from the same baseline. This mimics real-world scenarios where different outcomes need to be compared from a common starting point. Saving results as scenarios allows for easy comparison of different financial strategies or outcomes.
Lastly, it's essential to understand that Excel Solver is a powerful tool for optimizing linear and nonlinear problems. Whether it's maximizing profits, minimizing costs, or achieving a specific financial target like net commission, Solver can automate the trial-and-error process by iteratively adjusting input values based on a set of constraints.
