Other >> Sales & Retail

Profitability through Peak Sales Season

by Elizabeth Dixon


Submitted : Fall 2015

Data was collected over a four month period on the revenue generated in relation to the amount of orders employees were able to ship out to the consumer. Using the amount of hours these agents worked, with a set hourly bill rate to the outsourcing client, the total monthly cost was calculated for each month. Finding the difference of the total cost from the total revenue for the months of August, September, October, and November generated the total profit earned for the quarter leading into the peak revenue month of December. Additional employees were trained and hired in both September and November. By graphing the total profit over these months, it was graphically determined that profit was maximized during the month of November when all new employees had completed training.

By finding the derivative of the line generated above the highest point on the profit graph, P(x), it was proven the profit was indeed maximized during that month and P’(x) = 0. To find the affect these employees had on the overall cost of production, the cost per order was graphed in relation to time. The equation of this graph was found. The definite integral between the months the new employees were hired, provided the total change in cost for this timeframe. It was found that cost decreased for each order completed and shipped.

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Advisors :
Arcadii Grinshpan, Mathematics and Statistics
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Suggested By :
Brendan Barnett