Data Analysis for Product Launch Success, Thesis of Accounting

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Module Four Assignment Southern New Hampshire University BUS 22 5: Critical Business Skills for Success

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 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 2 5% 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 ,0 95. 00 and remained there for the rest of the year. Annually the cost of goods sold was $2 35 ,1 70. 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 $5,5 20. 00 down to $2,945.00. The costs of materials remained the same at $10,0 00. 00 along with the unit price at $0. 25 and the total amount of units produced was at 1 00,0 0 0. Units that were sold had an increase from 2 0,000 to 120 ,0 00. Summary of Results

The graph shown above provides us with key elements showing why the profits were so low through out the first few months of the new launch. The material, labor, and overhead were higher from the month of January through the month of April, once July came these had a decrease and remained pretty even throughout the rest of the year. By taking the revenue and cost and analyzing the data that was associated with the launch of the new product and then summarizing what we found out, it was ablet to be determined that the product was not capable of meeting the company's standards. With more time, it may be a possibility to meet the company's goal of profits that are equal to 25% of the cost of goods sold. At the beginning the new product was negative however throughout the year it was able to become positive by the time year end reached.

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