Hi Mark,
You can use that formula for adjusting the ZFW or the all-up weight distribution by shifting, adding or subtracting load. Note though, you cannot use the formula to calculate weight-to-add problems with the forward limit in the Echo since the forward limit changes with weight. That is a topic for CPL Performance though.
Which brings us to the excellent point Bob made about about the formulas not being usable in the Alpha and Bravo in the exam. In these systems you are stuck using the graphs. Having said that, just for fun you can still get a good estimate of the aft limit in the Bravo system by taking some readings off the graph and calculating the CofG position indirectly.
e.g.
At 2200 lbs the moment index at the aft limit is 204 thousand inch pounds. Working out the arm we get 204 x 1000 / 2200 = 92.7 inches.
At 1920 lbs the moment index is 128 --> Aft limit of Cof G is about 92.7
At 1620 lbs the moment index is 120 --> Aft limit of the CofG is about 92.6
If you test some other values you'll see they all sit around the same value depending on how fussy you are with your measurements. This is not precise enough for the exam of course but in real life it would give you an idea just how far out of the approximate aft limit you are. You could theoretically then use the formula to give you a ball park figure how much weight needs to be shifted or added. You could then double check the result on the graph to be sure.
Of course, you could just draw lines and be done with it
As Bob said, the formulas are not much use in the exam for Alpha and Bravo but this is one of those neat tricks that might win you a beer at the Aero-club bar
Cheers,
Rich