Scribd
Upload
1K views

BUS 225 Module Four Assignment Explanation of The Importance of Data Analysis

This document analyzes data from a company's new product launch. It finds that in the first 5 months, costs were higher than expected and the company was unprofitable. However, from June onward profits increased as labor and overhead expenses decreased while production amounts stayed the same. While the total revenue missed the target, charts show costs decreasing over time and units sold surpassing units produced in later months. The analysis concludes the product launch was slow initially but profitable overall, and with adjustments to production the company can further increase profits.

Uploaded by

Mina Woo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
1K views

BUS 225 Module Four Assignment Explanation of The Importance of Data Analysis

This document analyzes data from a company's new product launch. It finds that in the first 5 months, costs were higher than expected and the company was unprofitable. However, from June onward profits increased as labor and overhead expenses decreased while production amounts stayed the same. While the total revenue missed the target, charts show costs decreasing over time and units sold surpassing units produced in later months. The analysis concludes the product launch was slow initially but profitable overall, and with adjustments to production the company can further increase profits.

Uploaded by

Mina Woo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Beckie Wooden

J. Gilliard
September 22, 2021

BUS 225 Module Four Assignment

Explanation of the Importance of Data Analysis

Data analysis is vital to a business as it organizes and interprets data into useful information.
We are able to understand objectives and directives for the business by correcting/modifying
any issues we may be facing such as operation cost, targeting customers, and future trends.
Through data analysis we can determine how successful a new product launched and decide if
said product is the direction we want to move in. This analysis will present that information for
us by looking at cost, revenue, and profitability of this new product while also presenting
manufacturing, labor, and materials cost. The information within this report will help us
thoroughly analyze the performance of the new product.

Description of Findings
In analyzing the data, we can see that our goal of 25% of the COGS was not met initially. The
first five months we found ourselves in the red. This of course could have been due to higher
than expected labor and overhead cost in the first two quarters. We are now producing the
same amount with less labor and overhead expense while our materials cost has been at a
constant. In June we began to see profits and reach our goal of 25% though it was a rough start
we are in a much better place.
Looking at our total revenue vs. our targeted revenue we see January through May were not
profitable but from June to December we climbed past the target revenue. Total target revenue
was $280,395 for the year while total revenue was $245,000 missing our target by $35,395.
As we dig deeper into the data see that from January to April our labor expense was a steady
$8,400 and our overhead expense was $5,520. By May both expenses dropped significantly
while materials were consistent month over month at $10,000.
Moving on to the number of units produced vs. sold units we see sold units did not surpass
produced units until September. While we produced 100K units a month from January to July
we stayed under that mark. In March we increased sales by $60K over February’s sales.
September to December we sold 120K units consistently. We overproduced by 220K units but
with this data and further research we can get with production management and adjust our
output numbers for the future which will benefit us financially.
Summary of Results

This is a column chart and allows one to see where the company stands across several
assets/costs financially. Here we see that COGS for the first 4 months was at its highest and in
May began to taper off. Revenue was a slow start, but March sales jumped though they did
decline some in the following 2 months numbers shot back up in June and continued to the end
of the year.
Here we have another column chart that shows a comparison of units produced vs. units sold.
January, February, and May were the lowest selling months for the company. In March we sold
90k units which was 60k more then the prior months. September to December were stellar
months and units sold surpassed units produced.

The purpose of this analysis was to let us observe the data in an understandable manor. Giving
us information on the new product launch and how it impacted the company financially.
Through multiple charts we were able to visually see the numeric data tell a story. In the first
quarter profits were negative while the start of the second quarter seemed to keep us in the
negative June was a turnaround for the company where we began to see some profit. July
forward profits increased. We learned through this data that we could still produce the same
number of units and lower our labor and overhead expense. Also, we can see adjustments to
production will need to be made to avoid overproduction in the future. This product launch was
slow to start but profits were made and again with some adjustments the company is sure to
see profits increase.

You might also like