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Interval pricing of volumes using IF formula

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    Interval pricing of volumes using IF formula

    Hi Peeps,

    I'm trying to create a simple IF formula to price monthly volumes at the correct rate depending on the volume interval it falls into. I've attached an example, intervals below.

    Rate Interval
    £3.00 0 to 80,000 Tonnes
    £4.00 80,000 to 120,000 Tonnes
    £5.00 120,001 to 240,000 Tonnes
    £6.00 240,001 to 400,000 Tonnes

    as per the example, if in january i sell 15,000 units i would recognise sales of £45,000 (15,000 x £3).

    What makes it tricky is that the unit sales are cummulative basis so if say by during the month of June i exceeed 80,000 unit sales for the year a portion of the June sales will be priced at £3 and the amout above 80,000 will be priced at £4 and so on.

    Hope this makes sense.

    Cheers
    Neill
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    Last edited by Gti182; 07-18-2012 at 03:26 AM.

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    Re: Interval pricing of volumes using IF formula

    oops think i may have put this in the wrong section... mods please move or delete

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    Re: Interval pricing of volumes using IF formula

    Hi

    A little "ungly" but it works..!

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    Re: Interval pricing of volumes using IF formula

    Hi Fotis, thanks for that. The problem is the numbers are are cummulative for example at June there are 105,000 units sold year to date therefore the first 80,000 units will be priced at £3 and the difference of 25,000 units priced at £4 if that makes sense, this is what makes the formula quite tricky

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    Re: Interval pricing of volumes using IF formula

    Neiil

    1) I am not able to follow you.

    2) Don't post Duplicate Threads...

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    Re: Interval pricing of volumes using IF formula

    sorry about that.

    Your IF formula only works if unit sales were non cummulative.

    As per the example, unit sales in May are 19,000. This means a total of 85,000 units have been sold from the beginning of the year (January - May). The first 80,000 sales will be priced at £3 and 5,000 will be priced at the next interval of £4.

    Therefore of the 19,000 unit sales in May the cost would be £62,000 [(14,000 units x £3)+(5,000 units x £4)]

    does this help at all?

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    Re: Interval pricing of volumes using IF formula

    Interval.xlsx

    I had to add a couple of columns to get it to work
    try this worksheet. I hid the extra columns I added
    Click on star (*) below if this helps

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    Re: Interval pricing of volumes using IF formula

    I know I saw an elegant solution to this type of problem. I think this is close, but there may be room for improvement. Assuming A1 holds your sales amount. Note that anything over 400000 is worth £6.

    =SUMPRODUCT((A1-{0,80000,120000,240000,400000})*(A1>{0,80000,120000,240000,400000}),{3,1,1,1,0})

    Pauley
    Last edited by Pauleyb; 07-17-2012 at 02:06 PM.

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    Re: Interval pricing of volumes using IF formula

    Slightly reduced. if you don't care about the 400000 unit limit (i.e. anything>240000 is £6).

    =SUMPRODUCT((A1-{0,80000,120000,240000})*(A1>{0,80000,120000,240000}),{3,1,1,1})

    Pauley

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    Re: Interval pricing of volumes using IF formula

    I read the follow up notes. To handle this monthly:
    Put this in cell C2
    =SUMPRODUCT((B2-{0,80000,120000,240000,400000})*(B2>{0,80000,120000,240000,400000}),{3,1,1,1,0})

    Put this in cell C3
    =SUMPRODUCT((SUM($B$2:B3)-{0,80000,120000,240000,400000})*(SUM($B$2:B3)>{0,80000,120000,240000,400000}),{3,1,1,1,0})-SUM($C$2:C2)
    and then drag down to cell C13.

    Pauley

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    Re: Interval pricing of volumes using IF formula

    thanks for all the help guys, wow Pauley that formula is insane! <3

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