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Adding Constraints

The real world puts restrictions and conditions on formulas. A factory might have a maximum capacity of 10,000 units a day, the number of employees in a company has to be a number greater than or equal to zero (negative employees would really reduce staff costs, but nobody has been able to figure out how to do it yet), and your advertising costs might be restricted to 10% of total expenses. All these are examples of what Solver calls constraints. Adding constraints tells Solver to find a solution so that these conditions are not violated.

To find the best solution for the break-even analysis, you need to tell Solver to optimize both Product Profit formulas to 0. The following steps show you how to do this:


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