Anyone involved in business needs to deal with uncertainty. No one knows what the future will bring, or how external factors will affect a company. You can however, create models in a spreadsheet that contain different scenarios that may happen in the future. You can then estimate the effects of these different scenarios and create contingency plans you to mitigate bad situations or improve good situations.

Fictitious Garden Center is preparing a profitability forecast spreadsheet.

This spreadsheet will predict quantity sold, costs, revenue, and profits based on three different scenarios (the most likely scenario, worst case, and best case scenarios.)

To see how each scenario affects profitability, select a scenario from the drop down menu.

Each time you select a scenario from the list,
the projected performance table will automatically show the values for the newly selected scenario.