Hi, Im quite confused as to how the terminal bonus was calculated for the last question. I’ve been through the solutions online and I understand the working required, but I’m not too sure as to what particular function was used to calculate this bonus. many thanks
The level of terminal bonus will have probably been calculated using Goal Seek - that's how I did it, anyway! This changes the value of the terminal bonus so that the profit margin is the same as in part (ii). When I did this part of the question, I set up my calculations with a terminal bonus that was a total guess (say, 10%). Once I'd calculated the profit margin, I calculated the difference between this and the profit margin from part (ii). I then set up my Goal Seek so it sets the cell containing the difference between the profit margins from parts (ii) and (iii) to zero by changing the value in the cell containing the terminal bonus.
