• Confusion on Sumproduct Calculation for arriving at a weighted Net Valu

    From San@21:1/5 to All on Sat Jul 27 00:46:00 2019
    Hi,

    I have a table comprising of Quantity Price & calorific heat value of Coal

    Quantity is in Kg, Cost is in $/Kg, Heat Value is in KiloCalories per Kg

    Different Quantitites have different Prices and Different Kcal.

    A sample table is appended below

    A B C D E F G
    QTY (Kg)(Kcal/kg) Rate $/Kg cost $ kcal $ / Kcal $/Kcal
    500 4000 400 200000 2000000 0.1000 0.1000
    500 3000 350 175000 1500000 0.1167 0.1167
    500 2000 200 100000 1000000 0.1000 0.1000

    1500 317 475000 4500000 0.1056 0.1056

    Column E is the Heat value of the Quantity = Qty X Kcal/Kg

    Column F is a parameter termed as $/Kcal which is derived from dividing Column C data ($/Kg) by Column B data (Kcal/Kg)

    Column G is the same parameter as Column F i.e. $/Kcal but derived from dividing Column D (Cost in $ = Column A X Column C) by Column E (Kcal of the Qty = Column A X Column B)

    The net $/Kcal of all the 3 quantities for Column F (0.1056) is calculated as Sumproduct( Individual $/Kcal with Individual Qty) / Sum Qty

    Then net $/Kcal of the 3 Quantities for Column G (0.1056) is calculated as
    Sum Cost $ / Sum Kcal, i.e Summation of Col D / Summation of Col E

    When the quantities are same both the Net $/Kcal of Column F & Column G are equal. However when Quantities differ, these two values also differ, though the indivdual row $/Kcal remains same Same is appended below

    A B C D E F G
    QTY (Kg)(Kcal/kg) Rate $/Kg cost $ kcal $/Kcal $/Kcal
    2000 4000 400 800000 8000000 0.1000 0.1000
    500 3000 350 175000 1500000 0.1167 0.1167
    500 2000 200 100000 1000000 0.1000 0.1000

    3000 358 1075000 10500000 0.1028 0.1024

    QTY (Kg)(Kcal/kg) Rate $/Kg cost $ kcal $/Kcal $/Kcal
    500 4000 400 200000 2000000 0.1000 0.1000
    500 3000 350 175000 1500000 0.1167 0.1167
    2000 2000 200 400000 4000000 0.1000 0.1000

    3000 258 775000 7500000 0.1028 0.1033

    Would like help on undersatnading Which Net $/KCal is correct, Column F net or Column G Net and the reason for the same.

    Thanks for the help.

    San

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