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calculate/convert volume price to monthly average price

  1. #1
    Bultgren
    Guest

    calculate/convert volume price to monthly average price

    Let's assume that we have a price that is dependant on volume:
    0-1k units: $10
    1k-2k units: $9
    2k-5k units: $8
    5k-10k units:$7
    10k-20k units: $6

    Now, based on a volume forecast, I want to forecast the average price in a
    given month. I started out using IF-formulas (thought that it would be enough
    with 5 conditions), but I soon discovered that it was far more complex than
    what I anticipated. Is there a nice formula for this (or VBA code) or is
    there someone who has an idea on how to attack this problem in a good way?

  2. #2
    Bernard Liengme
    Guest

    Re: calculate/convert volume price to monthly average price

    How will you predict the number of sales at each volume level?
    If I thought the percentages would be: 5, 20, 50, 20, 5
    I could compute an average with
    =SUMPRODUCT({0.05,0.2,0.5,0.2,0.05},{10,9,8,7,6})
    The answer, of course, is $8.00 since I used a symmetrical distribution.
    Any help?
    --
    Bernard V Liengme
    www.stfx.ca/people/bliengme
    remove caps from email

    "Bultgren" <[email protected]> wrote in message
    news:[email protected]...
    > Let's assume that we have a price that is dependant on volume:
    > 0-1k units: $10
    > 1k-2k units: $9
    > 2k-5k units: $8
    > 5k-10k units:$7
    > 10k-20k units: $6
    >
    > Now, based on a volume forecast, I want to forecast the average price in a
    > given month. I started out using IF-formulas (thought that it would be
    > enough
    > with 5 conditions), but I soon discovered that it was far more complex
    > than
    > what I anticipated. Is there a nice formula for this (or VBA code) or is
    > there someone who has an idea on how to attack this problem in a good way?




  3. #3
    Bultgren
    Guest

    Re: calculate/convert volume price to monthly average price

    Unfortunately the total volume over the year is unpredictable so I can not
    use percentages.

    "Bernard Liengme" skrev:

    > How will you predict the number of sales at each volume level?
    > If I thought the percentages would be: 5, 20, 50, 20, 5
    > I could compute an average with
    > =SUMPRODUCT({0.05,0.2,0.5,0.2,0.05},{10,9,8,7,6})
    > The answer, of course, is $8.00 since I used a symmetrical distribution.
    > Any help?
    > --
    > Bernard V Liengme
    > www.stfx.ca/people/bliengme
    > remove caps from email
    >
    > "Bultgren" <[email protected]> wrote in message
    > news:[email protected]...
    > > Let's assume that we have a price that is dependant on volume:
    > > 0-1k units: $10
    > > 1k-2k units: $9
    > > 2k-5k units: $8
    > > 5k-10k units:$7
    > > 10k-20k units: $6
    > >
    > > Now, based on a volume forecast, I want to forecast the average price in a
    > > given month. I started out using IF-formulas (thought that it would be
    > > enough
    > > with 5 conditions), but I soon discovered that it was far more complex
    > > than
    > > what I anticipated. Is there a nice formula for this (or VBA code) or is
    > > there someone who has an idea on how to attack this problem in a good way?

    >
    >
    >


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