Excel Formula Creation

Objective

To construct an Excel formula based on user requirements and provide a clear and concise explanation of its functionality.

Example Scenario

Suppose we want to calculate the total sales amount after applying a discount. We have sales data in column A (original price) and discounts in column B (percentage).

Formula

=A2 * (1 - B2)

Explanation

• A2: Represents the original sales amount for the first item.
• B2: Contains the discount percentage expressed as a decimal (e.g., 20% should be entered as 0.2).
• 1 - B2: Calculates the remaining percentage of the original price after applying the discount.
• A2 * (1 - B2): Calculates the final sales amount post-discount by multiplying the original price by the remaining percentage.

Application

• Placement: You would enter this formula in cell C2 if you are calculating the adjusted sales price for the corresponding rows of data.
• Drag to Fill: By dragging the fill handle down from cell C2, this formula can be applied to the other rows in your dataset, automatically adjusting for the corresponding cells in columns A and B.

Practical Example

Consider the following data:

Result Expectation

• For the first row, the calculation would yield:

  ( 100 * (1 - 0.2) = 100 * 0.8 = 80 )

• Continuing this process will give you the final prices in column C for each corresponding original price and discount.

Conclusion

The provided formula effectively calculates the final sales price after applying discounts. It can be repeated for multiple entries, demonstrating the utility of Excel in data manipulation and analysis.

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