This document provides instructions for using Microsoft Excel to estimate the costs of ingredients for a mango smoothie product and determine a reasonable sale price. It describes entering information on the ingredients and their costs, using formulas like SUM to calculate total costs, and adjusting the estimated sale price until a profitable amount is reached. The process demonstrates how Excel can help evaluate costs and prices for new product development.

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3. Essential Steps
To define an optimization model in Excel you'll follow these essential steps:
1. Organize the data for your problem in the spreadsheet in a logical manner.
2. Choose a spreadsheet cell to hold the value of each decision variable in your model.
3. Create a spreadsheet formula in a cell that calculates the objective function for your model.
4. Create a formulas in cells to calculate the left hand sides of each constraint.
5. Use the dialogs in Excel to tell the Solver about your decision variables, the objective, constraints, and desired bounds
on constraints and variables.
6. Run the Solver to find the optimal solution.
Within this overall structure, you have a great deal of flexibility in how you choose cells to hold your model's decision
variables and constraints, and which formulas and built-in functions you use. In general, your goal should be to create
a spreadsheet that communicates its purpose in a clear and understandable manner.

4. Let us assume that we are going to sell a mango smoothie with the following information:
Product Information
Product Name/Brand: Pretty Park Mango Smoothie
Company Group/Name: Pretty Park Refreshment
Product Description:
Pretty Park Mango Smoothie is a refreshing creamy beverage using the Guimaras mangoes as the main ingredient. This mango blended juice is made to refresh your mind and
mango blended juice is made to refresh your mind and body.
Ingredients/Materials: Crushed ice , mango juice, condensed milk, sweetener, blended mangoes.
Estimated Sale Price: PHP 35.00

5. We will use Microsoft Excel to find out if our estimated price is reasonable considering the price of
the ingredients.
1. Copy the information below.

6. Note: Values with PHP or Philippine peso sign use the Accounting Number format. Its default uses the
dollar symbol ($). To change this, click the drop-down arrow at the currency button then select More
Accounting Formats, then change the symbol to PHP.

7. 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:

8. 3. Check if our estimated price will earn us profit. Type the additional information shown below then
apply the arithmetic formula for subtraction:

9. 4. The result is PHP 1.50. Our estimated price is not profitable. Let us make an adjustment. Include
the information below and deduct the Total from the New Sale Price:

10. 5. The result is PHP 13.50. This definitely profitable price. However, this does not guarantee our
product’s success.
6. Save your file as L4 Cost of Ingredients.xlsx.