Acme Widget Data Analysis #2
Acme Widget sells many different types of widgets to different types of customers. The widgets vary by size, color, price, and profit margin.
In this example, we want to categorize salespeople primarily based upon the profit that they contribute to Acme. Since neither profit nor expense are stored in the data, we create a simulation at the transaction level that represents the expenses of each widget type. We can then subtract the costs from the revenue and store the remainder, which represents profit. The profit is reported based on salesperson.
We create a single dimensional analysis, where the only dimension is Salesperson Number. The volumes sliced-and-diced are:
- Widgets Sold
- Revenue
- Expense
Two additional columns are calculated in the spreadsheet: Profit is calculated by subtracting the Revenue and Expense columns, and Profit/Expense is calculated by dividing the appropriate columns. The spreadsheet is sorted based on profit. Note that the most profitable salesperson (line 1 of the analysis) sold only about 1/3 as many widgets as the second most profitable salesperson. Yet the number one slot made about 60% more profit than the number 2, because of selling more profitable widgets.
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