1 Module Four Assignment Lyndzi Simpson Southern New Hampshire University BUS 225: Critical Business Skills for Success Melissa Jackson September 24, 2023
2 Module Four Assignment Explanation of the Importance of Data Analysis Data analysis allows you to identify key product indicators such as sales, revenue, and customer feedback to gain insight into how the product is doing in the market. By comparing sales and revenue to your initial figures you can identify if the product is exceeding your financial goals or not. Using customer feedback from surveys and reviews can allow you to understand customer satisfaction with the product. By comparing the costs of the product with the revenue you can tell if the launch was successful and generating a healthy profit margin. I am analyzing a new product for the company to see if it meets expectations. The expectation for this new product is 25% of the cost of goods sold. It's important to analyze this information so that the company knows if the product is profitable and needs to continue producing it or if it is costing money and needs to stop production. Description of Findings The first five months of the product launch were tough. The company took a loss in profit every month. June was the first month that the product beat the target revenue, but barely. The labor cost was cut in half starting in May and the overhead decreased as well. Selling 2/3 more units in June created a small profit for the company. Labor decreased again in July. July was the first month to profit over 25%. Units sold and profit increased in August and September. September, October, November, and December seem to have leveled out and in these last four months of the year, the profit and revenue are the same. The company only ended the year with a 4% profit. The first months had a negative impact on this based on the loss of profit totaling $59,140. In the last four months, the company's profit was at 75%. I would conclude that given the last 4 months' performance, the product has been successful. Summary of Results
3 This chart is a line graph showing the revenue the product brought in each month for an entire year. As you can see, March the product saw an initial spike in revenue before making a decrease in April and May. It looks like the produce gained a following and loyal customers who continued to purchase and revenue increased and then stayed stable at the end of the year.
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