Question
Cost analysis is extremely important for Fluffy. In addition to producing the stuffed animals and providing standard shipping, they also offer a range of other
Cost analysis is extremely important for Fluffy. In addition to producing the stuffed animals and providing standard shipping, they also offer a range of other services, such as express shipping, packing, and design. In fact, any service requested by a customer will be considered by Fluffy. When the company outsources a service, such as express shipping, the customer simply pays the amount charged to Fluffy. Fluffy has a standard markup for everything produced in-house, the stuffed animals, designs, and packing.
An illustration presents a table with six columns, and the column headers are: Number, Price: 100, Standard Shipping: 0, Express Shipping: 0, Packing: 25, and Design: 50. The data from the table are presented as follows: Number, 1010; Price: 100, 700; Standard Shipping: 0, 38; Express Shipping: 0, 0; Packing: 25, 50; Design: 50, 0;Number, 1011; Price: 100, 280; Standard Shipping: 0, 0; Express Shipping: 0, 154; Packing: 25, 125; Design: 50, 225;Number, 1012; Price: 100, 1,590; Standard Shipping: 0, 50; Express Shipping: 0, 0; Packing: 25, 0; Design: 50, 0;Number, 1013; Price: 100, 906; Standard Shipping: 0, 57; Express Shipping: 0, 0; Packing: 25, 25; Design: 50, 0;Number, 1014; Price: 100, 142; Standard Shipping: 0, 49; Express Shipping: 0, 0; Packing: 25, 250; Design: 50, 150;Number, 1015; Price: 100, 1,728; Standard Shipping: 0, 44; Express Shipping: 0, 0; Packing: 25, 125; Design: 50, 0;Number, 1016; Price: 100, 664; Standard Shipping: 0, 0; Express Shipping: 0, 252; Packing: 25, 35; Design: 50, 0;Number, 1017; Price: 100, 208; Standard Shipping: 0, 66; Express Shipping: 0, 0; Packing: 25, 35; Design: 50, 0;Number, 1018; Price: 100, 778; Standard Shipping: 0, 60; Express Shipping: 0, 0; Packing: 25, 0; Design: 50, 0;Number, 1019; Price: 100, 296; Standard Shipping: 0, 62; Express Shipping: 0, 0; Packing: 25, 10; Design: 50, 0;Number, 1020; Price: 100, 800; Standard Shipping: 0, 75; Express Shipping: 0, 0; Packing: 25, 0; Design: 50, 0.
The sample data file shows how they currently record their cost and markup information. For example, for Order # 1010:
The cost to make the products sold is $350. The price they charge is $700. As indicated by the column header, the markup on stuffed animals is 100%. There is no markup for shipping or express shipping. The markup for packing is 25%. The packing cost for Order # 1010 is $40. There is a 25% markup ($10), and the customer pays $50 ($40 + $10.) The overall cost for Order 1010 is $350 (stuffed animals) + $38 (standard shipping) + $40 (packing) = $428. The markup for the same order is $350 (stuffed animals) + $10 (packing) = $360. The total price to be paid by the customer is $788.
Fluffy would like to use their data to answer questions such as:
What is the total revenue generated? What is the overall cost structure of orders based on the services offered? How do additional services affect the overall profit margin?
How would you restructure the data to make it easier to answer these questions through analysis?
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