For a business to be successful, it is vital that data analysis is done. To determine the success of a product launch, it’s important for business leaders to understand its cost, revenue and profit. In this post, I will summarize my findings from analyzing the Cost, Revenue, and Profit spreadsheet retrieved from the company’s data center.
The data shows that the product launched has resulted in a $500,000 total revenue and $375,000. COGS total cost. The profit margin of $125,000 is 25% higher than the COGS. This profit margin meets the company’s goal of 25% of the COGS.
An analysis of data showed that labor cost for new products was much higher than anticipated, which accounts for 40% of COGS. The data also showed that most of the revenue was generated by a few key customers.
Visual Representation of Data
The bar chart below compares COGS labor-material ratios to better comprehend the data. It is clear that the labor costs for new products are high and there are potential cost savings.
Another pie chart displays the revenue distribution by customer. The visualization shows the dependence on just a few key customers, and how important it is to diversify the customer base.
Influence of visuals
I found data visualizations to be extremely helpful in understanding the data. Bar charts and pie charts highlighted areas that could be improved, including the high cost for labor and dependence on one customer group.
The target audience of this blog post is business leaders. It is crucial to communicate the findings and data clearly in an easy-to-understand and understandable manner that can be taken into consideration and implemented.
Overall, the new product launch has generated a profit that meets the company’s goal of 25% of the COGS. Further analysis showed that there were areas to improve, including the high labor cost and dependence on just a few key customers. Data visualizations helped to clearly highlight potential improvements and areas that could be improved. To improve product performance, the team should focus on increasing labor costs and diversifying their customer base.