Module Four Assignment Southern New Hampshire University BUS 225: Critical Business Skills for Success 01:39:57 GMT -05:00 Module Four Assignment Explanation of the Importance of Data Analysis Data analysis takes raw data and turns it into information and explanations that are useful. You c...
Explanation of the Importance of Data Analysis
Data analysis takes raw data and turns it into information and explanations that are useful. You
can find data anywhere you go and when it it correctly interpreted it can be valuable asset to a
company. Data Analysis is helpful with understanding if a new product was successful with their
launch by looking at the change in the cost of goods sold (COGS) from month to month,
changes in profit, how the percentage of profit in the cost of goods sold has changed, which
factors caused revenue and profit to change, and whether or not the company was eligible to
meet their goal of a 25% profit of the cost of goods sold. While analyzing all cost and revenue
data that was associated with the products that are newly launched and taking their finding and
summarizing them, it can be determined if the product is capable of meeting the company's
expectations.
Description of Findings
There was a decrease from month to month in the cost of goods sold. Starting in January, the
cost of goods sold was at, $23,920.00 and remained the same up until May where it decreased
down to $18,460.00. During the month of July, the cost of goods sold decreased to $17,095.00
and remained there for the rest of the year. Annually the cost of goods sold was $235,170.00.
During the first launch of the new product, the profit was a negative number at (-$18,920.00).
Throughout the year the products profitability continued to rise and by December it was at
$12,905.00. Annually the total profit of the newly launched product was $9,830.00. Though out
a period of time, the profit percentage of the cost of goods sold had an overall increase. During
the month of January, the percentage began at (-3.78%) and by the time we reached December
it has an increase to 4.18%. While the company was not capable of meeting their overall goal of
a profit that was equal to 25% of the cost of goods sold, it was able to finish the year with a
positive profit. There was a decrease of labor and materials, it originally started out at
$18,400.00 and decreased to $13,150.00. There was also a decline in overhead costs from
$5,520.00 down to $2,945.00. The costs of materials remained the same at $10,000.00 along
with the unit price at $0.25 and the total amount of units produced was at 100,000. Units that
were sold had an increase from 20,000 to 120,000.
Summary of Results
01:39:57 GMT -05:00
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