Highline Excel 2016 Class 15: Excel Charts to Visualize Data: Comprehensive Lesson 11 Chart Examples

Video Statistics and Information

Video
Captions Word Cloud
Reddit Comments
Captions
Welcome to Highline Excel 2016 class video number 15. Hey, if you want to download this Excel workbook file, Busn218-Video15, or the PDF files, or in this chapter, I actually made PowerPoints. And we want to start over here in PowerPoint. I'm going to go to slide number three. We actually want to locate each type of different chart before we jump over to Excel and start making charts. Now, I've selected slide number three. I'm going to use Shift-F5 to start on that slide. Now, charts, also known as graphs, are going to be pictures of quantitative or number data. We're always going to start with numbers and labels. In this case, we have a crosstabulated table. So we have our column headers and our row headers. But there's going to be numbers and labels. Now, instead of seeing the individual numbers, we want a quick visual impression. We want to be able to quickly see trends and patterns. Or see relative difference. Like I can easily see this column, Website Sales for June, is the tallest. Now we want to go to slide number five and talk about our number one chart rule, which is no chart junk. Chart junk is defined as any chart element that does not contribute to your message. This is a terrible chart, filled with all sorts of chart junk. The title, they left the default CHART TITLE text in there. Your title has to be succinct and informative. Look at this. We have July, August, September, but we also have the months over here. That is unnecessary repetition. You can decide whether the put the label for this particular pie piece either right next to the pie or in the legend. Look at this. They left the actual numbers unnamed. It says Series 1. We want to make sure and always name the actual numbers in our chart, which for us, will come from the field names at the top of the dataset. The colors in this are not helping to contribute to our message. Much too busy. This looks like this is from a candy cane factory or something. Not only that, but this person used a warm color to pop this pie piece out and a cool color to push this pie piece back, to make this one looks smaller and this one bigger. And then, probably the most chart junkie element of all, this is a 3D pie. You never want 3D pies. That distorts the proportions. Not only that, but many of the 3D chart elements that Excel offers you do not help contribute to the message. So we want to always try and eliminate chart junk. Now we want to go to our next slide, because we have a bunch of chart types. And here they all are. Not only that, but over in the PDF, I have quite extensive notes on each chart type. Now, let's look at each chart. Column chart is simply used to compare differences across categories. The height of each column conveys the number. Categories along the horizontal axis, the height of the column, we can quickly see June is the biggest. Now, if we tip a column chart on its side-- next slide-- this is called a bar chart. Now, both the bar and the column are used to compare differences across categories. In this case, the length of the bar conveys the number. Now, the difference between the column chart and the bar chart is that oftentimes when you tip it on its side, it will more forcefully emphasize the difference or the relative difference between the columns. Not only that, but bar charts, if you have really long labels, it will appear on one line, whereas with a column chart, the text will wrap. Now, notice for both the column and the bar, we only had one category here listed along either the vertical axis for the bar or the horizontal axis for the column. Now, if we have a crosstabulated table-- next slide-- that's the perfect job for either clustered column or bar, or stacked column or bar. Now in this case, we have clustered column and stacked column. Now, both of these charts come from the same crosstabulated pivot table. But the difference is this. If you have clustered column, you're going to emphasize the items in the legend. We can clearly compare each website sales or each in-store sales. Down here, we can still do that, but it's just a little bit harder. The emphasis here is on the height of the categories in the horizontal axis. We can clearly compare and see that June is taller than August. Next slide, we have yet another column chart, but notice there's no gap between these columns. Now, this type of chart called a histogram is great when you're counting or adding numbers between a lower and upper limit. And the fact that there is no gap is the visual indicator that no number can fit between any one of these categories. Next chart type, a line chart, shows trend for a number variable over a category such as time. Oftentimes, we see what is called a time series. Here we have sales. Certainly we have all seen stock charts where we see how the stock price is moving over time. Next chart is the combo chart. We are certainly allowed to combine columns and lines. And this is a great chart because notice the axis over here is in dollars and goes from 0 to 250,000. And over here it's percentages, in essence, from 0 to 1. So we have two different axes, each with a different scale. Next chart is the xy scatter chart. This chart is used where you have x and y data, like hours studied and test score. We go along the x a certain distance and along the y a certain distance and plot a mark. This chart helps us to see whether there's a relationship between two variables. Next chart is a certain type of xy scatter called a break even chart. And we'll see how to create this where we have fixed cost, sales, and total cost. And the crossover point is our break even in units. And lastly, we have a bubble chart, which is like an xy chart, except for we have a third variable, which is the size of the bubble. Now, one last thing before we jump over to Excel, we've got talk about terminology. Now, the term that Excel uses to describe the text or the labels, in our case, column headers or row headers, the term that they use is category. For the numbers, the term they use is series. We will always name our series, and they will usually come from the field names. And of course, we have our chart title. And the numbers in this chart are conveyed by the height of the column. Our next example for terminology is from our xy scatter. Now notice, here on the vertical axis, it shows our y-series numbers. Over here this would be our x-series numbers. And unlike our column chart, notice right here is a label. We're always going to have to label the y-axis with a label that says exactly what this number is. Same with our x-axis. So we'll have to add both an x and y label. And then, of course, we have our chart title. And the numbers for us are a certain distance along the x and along the y to give us each one of these markers. All right. Now, let's go over to Excel and try and make these charts. Now, over here in Excel, we're on the sheet Column, Bar, and Pie. And we want to see how to make each one of those charts. We have our proper dataset here. And we've already summarized by month and sales channel. There's our total revenue for each one of these categories. The numbers will show up as series and the different elements will show up as a category in the column, bar, and pie chart. Now I'm going to click in a single cell, go up to Insert, and there's the chart group. We want a column chart, so we go up to the Column icon. Click. We want 2D, none of this chart junk. We want 2D. There's clustered and stacked. Now, we only have one category, so when we click Clustered column, there is our column chart. Now, it's looking pretty good. That title at the top is not very helpful, so I want to click on the chart title. And notice there's a solid line. If you click twice, you see a dashed line. That's not what I want. I want to click once. And now I want to link this label to some text in the cells, so with the solid line, I'm going to type an equal sign. That shoots me up to the Formula bar. Then I'm going to click on the cell B2. Notice that formula up in the Formula bar. When I hit Enter, now that chart title is linked to some text in the cell. That chart right there looks pretty good. We have our numbers and our column heights and our category labels. We could change it up a bit if we want. We could come over to the green plus. And when we click it, it gives us a list of items that we can either add or take away from the chart. I want to click Data Labels. And instantly, I get numbers at the top of each column. Now we have some numbers in the vertical axis and at the top. In general, you do not need both, so I'm going to come over and click on the vertical axis and use the Delete key. Now, different elements-- and as I click on each element in my chart, notice when I click on the labels, it highlights all of them. I click on the column and it highlights all of them. That means I can format all of them at once. If I click a second time, then I can format just that one element. I'm going to click on the labels and then back on the columns to highlight all of them. And now I need to open up the Formatting Task pane. And so I use the keyboard Ctrl-1. Now remember, Ctrl-1, when I highlight Chart Elements, opens up the Task pane but back in the cells, remember when we click in a cell and do Ctrl-1, it opens up the Format Cells dialog box. Now, this isn't a dialog box. This is the Task pane. And there's some icons at the top. Sometimes it's tricky to find exactly what you want, so you have to click through the icons. I'm going to stop on the Fill. I'm going to select Solid Fill. And then down here I'm going to say Vary colors by point. There is a simple column chart to show different amounts and the relative differences across the category. Now I want to come down here in the second summarized dataset and I'm going to create another column chart. Insert, Charts, Column, and I'm going to select that first 2D one. Drag it down here, click on the chart title. Equal sign shoots me up to the Formula bar, and then I'm going to click on B2 and Enter. And that chart is done. Now, notice with this chart, we changed the color and added data labels. This one we didn't change the color and we left the numbers in the vertical axis. That is certainly a matter of preference, but either way you go, both charts are articulating differences across categories. Now I want to scroll over a bit and actually copy both of these charts and change them to bar charts, and then compare and contrast. Now watch this. I already have that chart selected. I'm going to hold my Control key, click on the second chart, and then Ctrl-C to copy. Now I'm going to click to the right somewhere, and then Ctrl-V. Look at that. I copied those charts quickly. Now I want to change the chart type. I'm going to click off to the side and then select just this chart. To change the chart type from a column to a bar, I can select the chart and go up to Design, Change Chart Type. Or I can simply right-click, and there it is, Change Chart Type. I'm going to come over on the left and select Bar. Click OK. Right-click, Change Chart Type, Bar, click OK or Enter. Now, both the bar and the column are clearly showing differences across categories, but the bar chart, when you tip the bars on their side, they tend to more forcefully emphasize the difference between the different bar lengths than the different column heights. Not only that, but if you have really long labels, then the bar chart will always put the label on one line. Now, we don't have an example here, but if you have long labels, they wrap. So sometimes it looks neater when you put the longer labels on a single line in a bar chart. Now I'm going to copy the top chart, Ctrl-C, and I'm going to come down here Ctrl-V. And let's change this to a pie. Right-click, Change Chart Type. And I'm going to change it to a pie. Click OK. This too is showing differences across categories, however, research shows that people can judge the relative differences between column heights and bar links much more easily than they can pie pieces. Not only that, but over the last five years, data analysis and business intelligence practitioners tend to prefer either the column or the bar over the pie chart. Now we want to go over to the sheet Stacked and Clustered. Here is a crosstabulated pivot table. We took our raw data, dumped Month into our row header, Sales Channel into our column header, and the intersecting numbers are adding with two conditions or criteria. Now, because we have more row headers than column headers, when we click either the clustered column or the stacked column, the month will be put into the horizontal axis and the sales channel will be put into the legend. Now we click in a single cell, Insert Charts. And here's our column dropdown. And there's our clustered column. I'll click and there is our chart. Notice there are the row headers, Months. Those are the horizontal categories. And in our legend are our column headers in the pivot table Sales Channel. Now, we can filter either in the chart or the pivot table. In either place, if you filter, for example, if we filter out Mail Order here, it does both the pivot table and the chart. And I can filter or unfilter in either place. Now, I don't want these buttons. I'm going to right-click. And I'm have no idea why, in this particular version, right-clicking those should have options for hiding. So we're going to instead go up to Analyze, Show Hiding. Here's our field buttons. I'm going to say Hide All. Now I'm going to come over and click the green plus, because I want to add a chart title. Then I'm going to click the green plus. Make sure the chart title is selected with a solid line. Equal sign shoots me up to the Formula bar, and then I click B2 and Enter. Now, this is a clustered column. With the chart selected, Ctrl-C. And down below, I'm going to click in the cell, Ctrl-V. Now I want to right-click Change Chart Type. It's got Column already selected. I'm going to come over to Stacked Column and click. And then click OK or Enter. Now, both charts are coming from the same crosstabulated pivot table. However, the clustered column is going to emphasize the items in the legend more than the months along the horizontal axis. For example, we can clearly see for September that website sales are bigger than in-store sales. We still can see the difference between website and in-store down here, but it's a little bit more difficult to decipher the difference. So the emphasis here is on the legend items. Not only that, but look down here. We can easily see that June is the tallest, especially as compared to the nearest total for August. Whereas up here, it's kind of hard to see the total for June and August. So same crosstabulated table, same overall numbers in the chart, but with a slight difference. Clustered column emphasizes the legend items. Stacked column emphasizes the horizontal axis items. Now, we want to go over and look at yet another column chart. I'm going to go over to the sheet Histogram. And on the sheet Histogram, we have this dataset. Boomerang Incorporated sells boomerangs online through four different websites. And this is our 2014 sales data. We have date and time. That's the exact date and time that the transaction was made. Different websites-- we sell through Amazon, eBay, Colorado, in Gel Boomerangs. Here's the product. Here's the type, whether it was wholesale or retail. And here's the revenue. Now what we want to do is look at this revenue column and actually count how many dollar amounts fit into each one of these categories. So for right here, we need a count of all of the dollar amounts for revenue that were greater than 400 and less than or equal to 600. When we get here, we need all of the dollar amounts from this column greater than 600 and less than or equal to 800. Now, notice something about these categories. We built them carefully. There is no amount from this column that can fit in between any one of these categories. So anytime you have categories like this and you're adding or counting numbers, that means if nothing can fit in between these, you have to make the columns touching so there's no gaps between the columns. Hey, we remember from video number five how to count between an upper and lower limit. We actually could do it with a pivot table. We could do it with count ifs. But back in video number five, we learned how to use the Frequency function. Now the Frequency function only needs the upper limits and the actual numbers it's counting, and it will do the rest. Now, I actually added the upper limits. I also typed an extra cell here which is not actually one of the upper limits, but that's going to be a label in our chart. All right. So you ready? This is an array function. It's going to deliver multiple answers simultaneously, in essence an array of answers. So I have to highlight all of the cells in advance. Now, right now I'm highlighting exactly the same number of cells as upper limits that I gave it. But that's not the way frequency works. You always have to highlight one more cell than you give it upper limits for counting. Then in the active cell, you type =FREQUENCY. Data array, that's all of the numbers you want to potentially count. So I'm going to click on the top cell, and I when I Ctrl-Shift-down arrow, there's like 26,000 rows here. Now, I'm using Ctrl-Backspace to jump back to the active cell. That reference does not have to be locked because this is an array function that we're entering simultaneously into multiple cells. Comma bins arrays means those are the upper limits. Now remember, frequency is polite. If I give it these upper limits, these are actually the categories that it automatically creates, including that last category that says greater than the last upper limit you gave it. The reason it creates that extra category right in that cell right there is because if we accidentally weren't paying attention when we created these categories, this would be the catch all to catch everything above. All right, you ready? Close parentheses. And I enter it simultaneously into all the cells with Ctrl-Shift and Enter. Immediately I look up into the Formula bar and I verify that my curly brackets are entered, because that is an array formula using the array function Frequency. And there is our count. Now, when I create my column chart histogram, I can either choose to be very explicit and list these on the horizontal axis. But that takes up a lot of room. So what I'm going to do is very carefully label all of these upper limits as Revenue Upper Limits, so the person looking at the chart knows that this is the upper limit. All right. So I'm going to highlight both columns, go up to Insert Charts. And there's our column. I'll click the first one. And there is the beginnings of our histogram. Now, the very first thing I'm going to do is I'm going to make sure to add both of the horizontal and vertical labels for those axes. Click the green plus, and there it is, Axis Titles. Solid line, I click equal sign. And this is the frequency, so I click on cell J6, Enter. Click on the Axis Title and make sure it's got the solid line. Equal sign, click on Revenue Upper Limit, Enter. Click on the chart title. Equal sign, I click on Count Transactions in cell H3, and Enter. Now, the font size of this is too big. And the Task pane actually does not contain the font for us to change. You can right-click, go down to Font, or you can get it up in the Format Charts ribbon tab, or you can just go up to Home. And right in the Font dropdown, you can select whichever font you want. I'm going to select 10. Now, the next thing we want to do is click on the columns. Ctrl-1 to open up our Task pane. I better scroll over and. There's a Gap Width. I'm going to reduce it to 0. I'm going to go over to the Paint Bucket, Fill, Solid, Vary Colors by Point. And I'm actually going to emphasize it even more with Border, Solid Line, and Black. If I click on the chart, I can see the columns are not touching. Now I'm going to click on the green plus, Add Data Labels. I'm going to choose to show the frequencies at the top of each column, so I don't need this vertical axis here. So I click on it and delete. Now, I actually don't like that word so close. I'm going to click on the Frequency label and click and drag. Now, I'd actually like to change the alignment on these labels here. And this was one of those items that's hard to find in here. You have to click through, click through until you find it. It's actually under Properties, Alignment. There's Text Direction. And we can select whichever one you want. I'm going to select Rotate All Text 270. And there it looks like our histogram is coming together. Now, this is for sales data. And notice the tallest column is the first one. And they kind of tail off this way. This is typical for retail sales data. Most of the customers are not going to spend very much money. Now, one thing that's important about this continuous quantitative data when we don't have any gaps is the order is important here, because if we have it from smallest to biggest, we can clearly see the shape of the data. Now, this is one example of a histogram. I would like to now go back to our dataset. And what we'd like to do is count how many transactions happen at different hours in the day. So I'm going to click in the single cell. And instead of doing frequency or counting, I'm going to use a pivot table and the Grouping feature. So I click in a single cell, Insert, Pivot Table. Or I can use the keyboard, Alt, N, V. I'm going to put it on this existing sheet. Scroll over. I'm going to try and put it in 05, click OK. Now, here's the date and time. And if we drag this down to rows, we know from earlier in our class in Excel 2016, it automatically groups it into years, quarters, and months. I want to come over to the row area. Right-click, and I'm going to select Group. I'm going to ungroup it by clicking on Months, Quarters, and Years. And now I'm going to select Hours. When I click OK, I have my upper and lower limit, in essence. And now I'd like to count. So I could draw any one of these fields down here, because any one of these fields will just count how many items are in a particular hour. But I'm going to choose to drag a text field, because that way it will default to count, which is what I want. Now, I could go up and change Design, Report Layout, Tabular, but I'm going to change both of the labels here by just typing. So I'm going to type in row labels, and type Time, tab, and here I'm going to type Frequency. Enter. Now I have my frequency distribution, the count for each one of our times. I'm going to go up to Insert, Charts, Columns, and select the first one. Now I'm going to drag it over to the side here. Close Pivot, Chart, Fields. Scroll over. I want to immediately go up to Analyze, Field Buttons, and Hide All. I don't need this legend over here, so I click and delete. Click on the title, equal sign. Click on 03 and enter. I'm going to expand the chart by pointing to the edge and click and drag. Now I want to click on the columns, Ctrl-1, Gap with 0. Go over to the Paint Bucket. I'm going to leave it blue, but I'm definitely going to emphasize the difference between the columns with solid line and make sure it's a different color than the actual inside of the column. That's looking pretty good. Now, I'm going to leave this histogram just like this. We have our labels along the bottom, our count along the vertical axis, and the chart title indicates what's happening in here. Count Transactions Between Upper and Lower Time Limits. We clearly know this is time, and this is count. Ctrl-X, scroll over. Click Ctrl-V. So we have two examples of a column chart where we reduced the gap width to indicate that nothing can fit between these counting categories where we have an upper and lower limit. A note about Excel 2016 charts, there's a brand new chart called Histogram. The problem with the built-in histogram is you don't have full control over building the upper and lower limits for each class. Not only that, but this chart assumes that the dataset has a bell shaped or normal distribution. Now, Microsoft says that they are going to give us the ability to set lower limit of the first class and the increment, but at this time, this chart does not have that ability. So we're not going to use the built-in histogram. All right. Let's go to our next example, the line chart. Now, the line chart is used to show a trend for a number variable over categories such as time. If we have time on the horizontal axis, we call it a time series chart. Some number, and we want to see the trend or pattern over time. Now, if we highlight both columns with the names at the top, we can go Insert. Over to Charts. And there's the line. Not the scatter one, that's for xy. We want the line. And I'm simply going to select the first one and click. And just like that, it misinterpreted the data. Now normally, this is some sort of category. It was trying to be polite down here. It saw that it was a number and thought we wanted multiple lines. This is a case where we either highlight just the sales to start with, or if we make this mistake, we can edit. Come up to Chart, Tools, Design. And there's Select Data button. Or on the chart, you can right-click, Select Data. Now, this Select Data Source dialog box is the most powerful feature for creating charts. And the reason why is there's our series, the numbers. There's our categories. We can add series if they're missing from our chart. We can remove them, which we're going to do. Or we can edit them. Now, I'm going to click on Year and click Remove. And then I'm going to click on Sales and click Edit, just to see that there it is. It's linked. There's the word Sales. That's the word that the chart engine is going to use for these numbers. And there are the numbers. Click OK. We can also, of course, edit, which is what we want to do. Our Categories, and then link the actual years as our category labels. And click OK. Click OK. Now, down here we have some chart junk, so I'm going to click on it and Delete. Now, I'm wondering about all of this space here. If I want to change the minimum value, I come over to the vertical axis. Click, Ctrl-1 to open up the Task pane. And there it is. There's Min and Max. I'm going to change it to maybe 400,000 and enter. I missed one zero. I'm going to try one more zero and enter. Scroll over, point to the edge of the chart, and click and drag. Clearly, I can see the trend over time is up. If I wanted to, I could come to the green plus, say Add Data Labels. I could come over to the vertical axis and delete. Click on this green plus. Click on the line, and maybe I want to change the color. So I'm going to come over here and say Solid Line. I'll accept the default color. Close the Task Pane control, and roll my wheel. There is a line chart. A time series chart to show some number value, in our case, sales over time. All right. Let's go look at the xy scatter chart. Anytime you have xy data, in our case, we have hours studied for a test and test score, is there a relationship between hours studied and test score? When you ask that question, always the first step is to visualize. And we use an xy scatter chart. I click in a cell, Insert. Over to Chart. You want to make sure and not try and do xy scatter with a line chart. You want to use xy scatter. Now, if you have sample data like we do, you want to use the markers. If you have a model like a breakeven fixed cost variable cost model, which will be our next example, you use the line. We have sample data that we've collected, so I'm going to click the markers. There is an incomplete xy scatter. The biggest problem with this chart is that it does not have an x label or y-axis to tell us what these numbers mean. Come up to the green plus, Access Titles. I see that it's got a solid line. Equal sign. And this is the y. So I click on Test Score and enter. Click on the x-axis label, equal sign. Hours Studied and enter. Now let's click on the chart title, equal sign. I'm clicking in cell E1 and enter. With the chart title selected, I'm going to go to Home and change the font to 10. Now I can look and see, is there a relationship between hours studied and test score? Yes, it looks like it's going up, which means as hours studied is increasing up, up, up, the test score, the y variable, tends to go up. This is called a direct relationship. Now, in a statistics class, we'd have to calculate, doing a lot of calculations what the best fit regression line is, and something called r squared, the goodness of fit. But in a chart, you can simply come over, right-click and say Add Trend Line. And just like that, it does our best fit line. I can come over here to the Task pane, come down, I'm going to check Display Equation and Display R Squared. Just like that, that is a lot of heavy lifting to calculate those numbers and that equation and that r squared. Now I'm going to click on the horizontal grid lines, delete. Vertical grid lines, delete. And there we go. An xy scatter chart. Excel charting engine knows how to do these perfectly. Now let's go over and look at a specific example for xy scatter. I'm going to click on Breakeven. Now we actually want to go look at the answer first, so I'm going to click on the Breakeven Answer. And this is a breakeven fixed costs variable costs chart. Now, what we have here are units plotted along the x and dollar amounts are plotted along the y. But the blue line is sales, the red line is fixed cost, and the green line is total cost. When we plot sales and total cost, the intersection of the two gives us our breakeven point in units. Now, this is a very useful chart. Every class you take in business school, from marketing to economics to managerial accounting to finance to an Excel class, will have you do it. And out there in the working world, you have to do this before you bring a product to market to see whether it's worthwhile. Is your demand past this point or is it below it? And the beauty of doing this in Excel, of course, is we set up our assumption table. We're going to make all of our formulas. And when we change one of the inputs, what if this wasn't really $35, it was $33? When I hit Enter, all of the formulas and our chart updates. Look at that. Instead of 400, it's 333 units. Ctrl-Z. All right. Let's go over to Breakeven sheet and let's do this. Now we're going to have to calculate units, sales based on the units, variable cost based on the units, contribution margin, fixed cost, total cost, and net income. All right. Units equals, and our assumed start units will be 0. Enter. Equals, and this will be a different formula than the first formula in our column. So I'm going to say, always look one cell above, plus the increment of 100. And I'm going to hit the F4 key. Ctrl-Enter, and copy it down. So we have from 0 to 1,000. Now, with our unit price and variable cost, we can calculate our sales at each unit level and variable cost at a unit level. Equals the units times the unit price. And I'm going to lock it with the F4 key. Ctrl-Enter. And now we can double click and send it down because we have something to the left. Equals the units times our variable cost. I'm going to hit the F4 key. Ctrl-Enter. Double click and send it down. Now, contribution margin is a term you hear in managerial accounting or economics. Now, the calculation is going to be sales minus variable cost. And you might have heard sales minus variable cost referred to as gross profit or gross margin. But for us, it's going to be how much is left over to cover fixed costs after we subtract all of our variable cost. So we're going to calculate equals the sales, two sales to my left, minus the variable cost, one cell to my left. Ctrl-Enter. Double click and send it down. Now, for our charting, we're going to need fixed costs. And we need the same number in every single cell. Now, this seems really weird. We don't normally do that. But if we're going to plot x and then this one y here, sales, this other y, fixed, and then total cost is our third y, well, we're going to need an individual y value for each one of our x's. So equals, and there's the fixed cost, with an F4 to lock it. Ctrl-Enter, double click and send it down. So we can see if this is the contribution margin, the amount left over to cover fixed costs, right here at 400, we have exactly enough to cover fixed costs. Anything past we have enough left over to cover fixed costs and our profit. Now total cost is going to be equals whatever the variable cost plus our fixed costs. Ctrl-Enter, double click and send it down. Net income, there's a few ways we can calculate this. I'm going to say, hey, sales minus total cost. Ctrl-Enter, double click and send it down. Right there, we can see yes, net income at 400 units is 0. We have exactly 4,000 in contribution margin to cover our fixed costs. Now we can plot it. We're going to highlight our x and one of our y's. Notice we have our labels at the top. Those show up as our series name. Now I'm going to hold the Control key, highlight the labels and all of the second and third y values. Now I go up to Insert. Over to Charts. There's our xy. And this is where you use the line. So I'm going to click, actually, the second one so we have smooth lines. Now I'm going to click on the chart title and Delete. We don't really need a chart title here. This is part of our model. I'm going to click on the legend, Ctrl-1 to open up the Task pane. And I'm going to put this as the top, as if it was a label for us. Our sales, fixed costs, and total costs. And now we need to come over to our green plus, Axis Titles. This axis title, we don't really need it. These are dollar amounts and we can tell from these labels up here. So I'm going to delete it. But this one I'm going to say, equal sign and click on Units over here and Enter. Now, the trick is, how do we get the little marker to show our breakeven point? Well, the breakeven point is going to be the total fixed cost divided by the contribution margin for one product. So $45 minus $35 is $10. So for every one unit we sell, we have $10 left over. So if we take 4,000 divided by $10, that gives us 400. So our break even formula here is going to be equals the fixed cost divided by open parentheses, and I'm going to say unit price, minus our variable cost, close parentheses. Ctrl-Enter. Now, we're going to have a problem with that formula in our chart later. And we will come back and fix it. Our breakeven y, well, if I'm going to plot a point on the chart, not a line but a point, I still need an x and a y. Well, there's our x at exactly 400 units. What's the y going to be? Well, the y is the dollar amount. So I can choose to either do total costs or total sales. It's easier to do total sales, so I'm simply going to say, hey, 400 units times my unit price, and Enter. So there it is. I have an x and y that I can plot as a single marker on this chart. Now, I would like to have a label so that I can have a label that says breakeven units are equal to. And as the inputs change, the breakeven unit will change, and that label will change. So I'm going to create a text formula, equals, and in double quotes, breakeven units, with a space, an equal sign, a space, and double quotes. Join it to the 400. And when I hit Enter, now I have my label. Now, notice we have an x, a y, and not only that, I'm going to call the series this. And so it's easy to access this inside the chart to show up as a label. And it will show up in our legend. All right. I'm not going to highlight this and do something. I'm going to come over to the chart, right-click, Select Data. This Select Data dialog box is the real power to charting, because we can do whatever we want. Like add a series. The series name, I'm going to say, hey, there it is. x value, there's my x. The y value, be careful of that little array there. You want to highlight it and delete it before you put anything there. And now I click on the y. When I click OK, click OK, what? It didn't show up. We'll find in just a second, but notice, no problem. It's right up in the legend. Now, one way to find it, and this is a cool trick, you can click on one of the lines and use your arrow keys on your navigation pad. And look, I up arrowed and found it. If I down arrow, notice these arrow keys cycle through the series of number. And there I found it. Another way, if you can't find it that way, is to go up to Format. And over in Current Selection, there's a whole dropdown with all the different elements in a chart. So now with this one selected, I'm going to Ctrl-1. And I want to go over to the Fill bucket, Marker, Marker Options. And you can choose whichever built-in option you want. I'm going to choose a triangle, Fill, how about Solid? And I'm going to pick a very loud color like red. Now I'm going to close this and come over to the plus. And now I want to say, hey, data labels. And this triangle, I point and I'm going to say More Options. And then over here we have some options. I'm going to check Series Name, and just like that, it shows up. Now I'm going to uncheck the y, and the Show Leader Lines. That is going to be amazing. Look at that. There is a floating label. And now with everything set in our chart, we can do our what if analysis. What if the price was $46? Instantly, our table of formulas update, our chart updates also. Now, wait a second. Look at that unrounded number. Remember, that's the series name that came from this formula that's looking at this calculation. Now, we have number formatting to show zero decimals, but formulas do not see number formatting. So we need to officially round this. And this is always to the integer. Now, I could use Round or I could use Round Up to be a little bit more conservative. And we're always going to the integer since this is units, comma 0 number of digits, close parentheses, and Enter. And that solves the problem. Now we can do our what if analysis. What if our variable cost was actually $37? Then our breakeven point in units is 445. If our fixed cost were actually $5,000, I type $5,000 and Enter. Everything updates. Now I'm going to Ctrl-Z-Z-Z-Z. And there we go. We have built a fixed cost variable cost breakeven model with a bunch of formulas and a dynamic chart. Now we have two more charting examples. I want to go over to the combo second axis. Now on this sheet, we have revenue, expenses, all in dollars. And then here we have expenses as a percent of revenue. Now, this is a completely different scale, but no problem. We can add this as a line on our chart and put on the second axis. Now in earlier versions, this was harder to do. You actually had to manually add the different series, and then add them to the second axis. But in 2016, watch this. Here's our labels for a horizontal axis. These will be columns, this will be a line. I go up to Insert. Over to Charts. And there is our combo chart. Now watch this. When I highlight, look, it gives us a preview. And that's the one we want. When I click OK, that is pretty amazing. Now we want to click on Chart Title, Delete. Now I'm going to click on the legend, Ctrl-1, and I'm going to add it to the top as if it were our chart title. And what's so amazing about this secondary axis is, in the old days, the line would be down here, and you have to click on it and come over and change it from primary axis to secondary axis. But that is done automatically. We simply highlight the labels, column numbers, and our line numbers, and our chart is done. Now, we have one last amazing chart. We want to go over to the sheet Bubble. And on the Bubble sheet, we have Project, the Expected Rate of Return, the Risk Estimate for the project, and the Amount Invested. Now, this is going to be our x value. This is our y value. But wait a second. We have a third variable. We'll actually plot this third variable as the marker, but the size of the marker or the bubble will indicate the size of the third variable, the amount invested. We simply have to make sure that the x is in the first column, just like our xy scatter charts. Highlight the three columns. The names of each one of the number series are at the top. We go up to Insert, Chart. And in the xy scatter group, there it is. There's the bubble. I click and we have-- wait a second, some numbers without labels. Always the most important thing for xy scatter is to immediately come over and say, hey, give me the axis titles. I'm going to scoot this over to the side. And Control and roll to zoom out a bit. Click on the y-axis equals, click on Risk Estimate, and Enter. Click on the x-axis, equal sign, and click on Expected Return and Enter. Now notice, we can clearly see this is our expected return. This is our risk estimate. But wait a second. We don't have a label for this. We'll add that in a second. Let's first click on the chart title. And I don't have anything in the cell, so I'm simply going to type Investment Project, and Enter. Now, I'd like the dollar amounts to actually show up, so here is a simple, hey, go to the plus and Data Labels. And it actually does not put in the right numbers. You can clearly see these are risk estimates. So I'm going to go over to the More button, More Options. Click up on the Series option, Label Options. And check that out. There it is. Bubble size. So I'm going to check that one and uncheck y. Now, we've seen how to link chart titles and axis labels to the cells. Hey, we're going to have to add our own label here. I'm going to go up to Insert. In the Illustrations group, we click Shapes. And I'm simply going to put, hey, a rectangle. I click once. I come over here and I see my little very thin crosshair. I click and drag. Now I have added a text box with the outside solid. I'm going to come up to the Formula bar, type an equal sign, and then click on the cell with Amount Invested, and Enter. And just like that, what happened? That is formatting. I'm going to click on the outside edge, come up to Solid Fill. I'm going to select this color right here. I don't think I like that black outline, so I'm going to come down and say No Outline. Now, I see that this is white. I'm going to come over and click on all of the text labels, go up to Home. Select White font so it matches. And look at that, it looks like I misspelled the word. I'm going to come over here put it in edit mode, F7 to do spell check. Invested, click Change, click OK, and Enter. Now I'm going to change the width of this just a little bit so it shows in millions. And there it is. There is our three variable, x, y, and this third variable, the size of the marker or the bubble. Wow, that was an epic video. We saw all sorts of charting. We saw a bubble chart. Back here we saw a combo chart with columns and line. Back over on breakeven, we saw an amazing model built with formulas for fixed costs, variable costs, breakeven analysis, and this amazing dynamic chart. We saw back on xy how to do xy scatter plot with a trend line for our sample data. We saw how to do a line chart. We saw how to do a column chart with no gap width when we had an upper and lower limit called a histogram. We saw how to do stacked column and clustered column. And then back on the sheet, Column and Bar, we saw column, bar, and pie. All right. That was a lot about visualizing data with charts. Next video, we'll get to see another visualization method, conditional formatting. All right. We'll see you next video.
Info
Channel: ExcelIsFun
Views: 108,183
Rating: 4.9330235 out of 5
Keywords: Highline College, Excel 2016, Mike Girvin, Busn 218, Spreadsheet Construction, Highline Excel 2016 Class, excelisfun, Learn Excel, Free Excel Class, Intermediate Excel, Advanced Excel, Basic To Advanced Excel, Excel Charts to Visualize Data, Comprehensive Excel Charts Video, Effective Excel Charts, Visualize data with Excel Charts, Column, Bar, Stacked Column Clustered Column, X Y Scatter Chart, Break Even Chart in Excel, Line, Bubble Chart, No Pie Charts, Business Analytics
Id: xLmtGk7Ymy8
Channel Id: undefined
Length: 52min 27sec (3147 seconds)
Published: Fri May 20 2016
Related Videos
Note
Please note that this website is currently a work in progress! Lots of interesting data and statistics to come.