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Optimizing Product Margin

Many businesses use product margin as a measure of fiscal health. A strong margin usually means that expenses are under control and that the market is satisfied with your price points. Product margin depends on many factors, of course, but you can use Goal Seek to find the optimum margin based on a single variable.

For example, suppose that you want to introduce a new product line, and you want the product to return a margin of 30% during the first year. Suppose, too, that you're operating under the following assumptions:


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