The Fitz Bookzzz Company currently sells its products, children’s books, through multiple distribution channels. It sells subscriptions that provide children with a box every month containing an assortment of age-appropriate books and magazines. The company also sells its books through book fairs held in elementary and middle schools throughout the school year. In addition, the company sells its books through its own website and through wholesalers. Annual sales, gross profit, and gross profit percentage data from the past eight years is shown in the following screen shot of an Excel worksheet that a Fitz Bookzzz manager prepared. Access the Excel file online in the MyLab Accounting exercise to complete the requirements for this exercise.

Requirements
1. Insert formulas in the Gross Profit % rows for Years 1 through 8 for each of the four distribution channels (subscription boxes, book fairs, company website, and wholesalers).
2. Insert sparklines in Column J for the Sales Revenue, Gross Profit, and Gross Profit % rows.
3. Which distribution channel(s) is trending upward in sales revenue over the eight-year time period?
4. Which distribution channel(s) is trending upward in gross profit over the eight-year time period?
5. What conclusions can you draw from the sparkline trends for each of the four distribution channels?

Transcribed Image Text:

1 Sales Revenue 2 Subscription boxes 3 Book fairs 4 Company website 5 Wholesalers 6 7 Gross Profit 8 Subscription boxes $ 100,060 $ 9 Book fairs $ 56,453 $ 10 Company website $ 11 Wholesalers 12 13 Gross Profit% 14 Subscription boxes 15 Book fairs B Year 1 $250,150 $ 125,450 $ $ $ 76,820 $ $ 75,148 $ 16 Company website 17 Wholesalers 18 Year 2 242,696 $ 138,296 $ 84,686 $ 81,491 $ 101,932 $ 59,467 $ 31,496 $ 37,262 $ $ 23,814 $ 23,632 $ D Year 3 249,297 $ 150,604 $ E Year 4 235,586 $ 159,716 $ 92,223 $ 97,803 $ 98,571 $116,757 $ 107,198 $ 103,658 $ 66,266 $ 68,678 $ 41,501 $ 27,600 $ 45,967 $ 31,525 $ Year 5 254,786 $ Year 6 246,123 $ 162,862 $ 186,315 $ 99,730 $ 105,486 $ 136,396 $ 162,039 $ 112,106 $ 66,774 $ 48,868 $ 38,191 $ 110,755 $ 78,252 $ 51,688 $ 42,130 $ H Year 7 250,184 $ 197,587 $ 96,874 $ 214,863 $ 117,587 $ 81,011 $ 49,406 $ 53,716 $ Year 8 249,784 207,545 95,861 306,137 119,896 83,018 50,806 73,473 Sparkline