Advance

Spreadshee
t Skills
Lesson Objectives
Familiarize the most commonly
used functions in Microsoft excel

Use several conditional functions

available in Microsoft excel

Use Microsoft Excel as a viabke

tool in market research and
product development
Whether you work in the field of accounting or not, the truth is
whatever you do should be counted for. This is because the
resources you use cost you expenses. Whether you become a
scientist, an engineer, a yoga instructor, a bartender, or an
airline pilotm it is important to understand how a company
spends to be able to deliver a product or service. These factors
could easily be computed using spreadsheet programs like
microsoft excel or Google Sheet.
Estimating the Product Cost using Microsoft Excel

Let us assume that we are going to sell milk tea with the following information

Product Information
Product Name/Brand : Starbuko Organic Milk Tea
Company/Group Name : Starbuko Foods Corporation
Product Description :
Starbuko Milk Tea is a special milk tea using organic ingredients especially
made for Filipinos.
Ingredients/Materials : tea, water, condensed milk, ice, special sweetener
Estimated Sale Price: 25 pesos per Cup

We will use Microsoft Excel to find out if our estimated sale price is reasonable considering the actual
price of the ingredients.
Estimating the Product Cost using Microsoft Excel
1. Copy information below

Note: Values with PHP or Philippine peso sign use the Accounting Number format default uses the dollar
symbol ($). To change this, click the dropdown arrow at the currency button then select More
Accounting Formats, then change the symbol to PHP.
Estimating the Product Cost using Microsoft Excel
2. Use the SUM formula to get the summation of the values from C4 to C7. the sum formula is
=SUM(C4:C7). Type this on cell C8 as shown below”
Estimating the Product Cost using Microsoft Excel
3. Check if our estimated price will earn us profit. Type the additional information shown below then
apply the arithmetic formula for subtraction.
Estimating the Product Cost using Microsoft Excel
4. The result is PHP 2.20. Our estimated price is not profitable. Let us make an adjustment. Include the
information below and deduct the total from the new sale price.
Estimating the Product Cost using Microsoft Excel

5. The result is PHP 7.80 This is definitely profitable at this price. However, this does not guarantee our
product’s success.

6. Save your file as L4 Cost of Ingredients (Last name of group Memebers).xlsx

Analyzing Data using Microsoft Excel

It is now time for us to collect data from our target market. In reality, researchers would also come up
with survey questions before they release the product. The data they gathered would help them
determine if the product has any chance of succeeding in a target market.

ACTIVITY
For your group’s product, come up with several questions that will help you determine how your sample
from your target market would perceive your product. Your target market for this activity is the people in
your school (teachers, students, personnel).
 Sample Survey (Food Products)
Name:_________________________________ Age:__________________
Income/Day: ___________________________(optional)

Instructions: Circle the letter of your answer.

1. On a scale of 1-5, how would you rate the product’s quality?
a. 1 b. 2 c. 3 d. 4 e. 5
2. On a scale of 1-5, how would you rate the product’s taste?
a. 1 b. 2 c. 3 d. 4 e. 5
3. On a scale of 1-5, how would you rate the product’s presentation?
a. 1 b. 2 c. 3 d. 4 e. 5
4. Are you satisfied with the product?
a. Yes b. No
5. Would you recommend the product to a friend?
a. Yes b. No
6. How much are you willing to pay for this product?
a. PHP 15 and below
b. PHP 16-25
c. PHP 26-35
d. PHP 36-45
e. PHP 46-55
Suggestions or Comments:_____________________________________________________________
Analyzing Data using Microsoft Excel

Add more questions fitting for your product. If your product is not a food product, replace the
“taste” rate with durability or function rate. Have this survey form approved by your teacher then produce
around 15 copies of these.

before we do actual product testing, your group has to produce your sample product.
Produce samples for 15-20 people.

start your product testing in your school by letting students, teachers, and or personnel
taste.test your product. Afterwards, gather the data and place them in Micorosoft Excel. A sample of this
spreadsheet is on the next page using milk tea example.
Obviously, this data is raw. Assuming that we have a huge sample, we have to apply several formulas to
be able to easily analyze the result of this survey.

Let us start by a simple average formula to determine the average rating of Quality, Taste, Presentation,
and Product.
The syntax would be =AVERAGE (cells involved)
Example:
using figure 1, determine the average for Quality,Taste, Presentaiton, and Product
=AVERAGE(F5:F19)
=AVERAGE(G5:G19)
=AVERAGE(H5:H19
=AVERAGE (I5:I19)
Determine the average for all your criteria and place them at the bottom of your survey result similar to
screenshot below
Next, determine how many people said YES or No if they were satisfied with the product or if they would
recommend it to their friend. For this, we will use COUNTIF function.

Using the =COUNT function will allow us to count the number of cells that contains something.
However, in this case, we just need to count the ones that have YES or NO in them, For this we have to use the
COUNTIF function.

COUNTIF Function Syntax:

=COUNTIF(range, criteria)

Range – the cells where the counting will take place

Criteria – the label or value that determines if it is to be counted

EXAMPLE:
using figure 1, the formula for getting the number of YES for the criteria is
=COUNTIF(J5:J19, “YES”)
Determine the number of YES answers in both criteria and place them at the buttom of your survey results similar
to the screenshot below.
If we were to determine if we should sell your product or service to teachers or students, we can use the
AVERAGEIF function.

AVERAGEIF
Using the AVERAGEIF function, we can average a range if the cell beside it quals to “teacher” and/or
“student”.

AVERAGEIF uses the following syntax:

=AVERAGE (range,criteria,average range)

Range – the range of cells where you want to look for the criteria
Criteria – a value or label that determines if a cell is part of the range to be averaged
average Range (optional) – the actual range of cells that will be averaged, if omitted, the range will
be used instead.

=AVERAGEIF(E5:E19,”Teacher”,F5:F19)
=AVERAGEIF(E5:E19,”Student”,F5:F19)
With this, we can definitely say that the teachers rated the product higher.

In other instances, you may also want to use the SUMIF function which works similarly to the AVERAGEIF
function, excepts it gets the summation rather than the average.
Activity
Using the formula you have learned, accomplish the following by analyzing your data. Use the
data you have gathered.

1. Determine the number of people who are willing to pay a certain amount?
2. How many of the certain group (e.g. teacher/student) are willing to pay more?
3. How many of the certain group (e.g. teacher/student) like the presentation of the product
services.

Challenge
1. Try to sell your product or service in school. Then, check your profits. Encode the
data of your profits in Microsoft Excel then use the formulas you have learned to
determine if your product or service was profitable or not. Log the customer’s age
range as well.
2. Create and conduct a survey result of your product. Determine the quality, taste,
presentation, and product. Also you have to identify how many are satisfied or
recommended and what is the best price for the product based on the survey
conducted.