Based on the data from our analysis table we seem to be losing a great deal of profit from the following two product sub-categories; bookcases ($ 33,582.13 loss) and tables ($ 99,602.53 loss). We are however, making a lot of profit from the telephones and communication ($ 316,915.64 gain), binders and binder accessories ($ 307,413.42 gain), and office machines ($ 307,712.93 gain) product sub-categories. So it would be a better opinion for the store to stock more telephones and communication, binders and binder accessories, and office machines. And to stock less  bookcases and tables.

This being said, overall our most profitable products are generating such substantially high profit that it offsets the losses we are are facing in binders and office machines. So if the products that are losing us money are complimentary to bookcases and telephone sales the loss we are experiencing on a micro scale may be resulting in overall higher profits through increased sales of more profitable products.

This was an extremely interesting lab for our group as two of us are economics majors and spend a great deal of time studying profit maximizing  firms.

Analysis Table

Below is a table that shows the top 7 customers that we are losing the most profit on.

It would be in the store’s best interest to not continue doing business with these 7 customers because we would be operating on a huge lost in profit.