The Patz 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 screenshot of an Excel worksheet that a Patz Bookzzz manager prepared.

Using the screenshot, answer the following questions:
1. What is the Excel feature that is pictured in Column J?
2. Describe the steps that would have been taken in Excel to display the line contained in Cell J2.
3. How is the gross profit percentage calculated? What formula would have been entered in Cell B14 to calculate the gross profit percentage?
4. Describe the eight-year trend in the following categories for each of the distribution channels:
a. Subscription boxes
b. Book fairs
c. Company website
d. Wholesalers
5. What conclusions can you draw from analyzing the trends in the data?

Transcribed Image Text:

1 Sales Revenue 2 Subscription boxes 3 Book fairs 4 Company website 5 Wholesalers $ $ 12 13 Gross Profit % 14 Subscription boxes 15 Book fairs $ 6 7 Gross Profit 8 9 Book fairs $ 10 Company website $ 11 Wholesalers 16 Company website 17 Wholesalers 18 $ Subscription boxes $ 103,853 $ 58,190 $ B Year 1 253,300 $ 126,500 $ 79,500 $ 74,300 $ 33,390 $ $ 23,033 $ 41% 46% 42% 31% C Year 2 248,234 $ 143,476 $ 90,169 $ 80,363 $ 104,258 $ 61,695 $ 39,674 $ 24,109 $ 42% 43% 44% 30% D Year 3 249,315 $ 165,715 $ 104,145 $ 96,307 $ 104,712 $ 103,444 $ 74,820 $ 51,396 $ 31,697 $ 72,915 $ 46,865 $ olun E Year 4 235,100 $ 174,001 $ 109,352 $ 117,398 $ 26,966 $ 42% 44% 45% 28% 44% 43% 47% 27% F Year 5 G Year 6 235,120 $ H Year 7 230,065 $ 248,500 $ 179,221 $ 199,114 $ 206,979 $ 112,633 $ 125,135 $ 130,078 $ 135,759 $ 162,911 $ 220,256 $ 109,340 $ 73,481 $ 55,190 $ 38,013 $ 44% 41% 49% 28% 105,804 $ 83,628 $ 61,316 $ 42,357 $ 45% 42% 49% 26% 108,131 $ 84,862 $ 66,340 $ 55,064 $ 47% 41% 51% 25% Year 8 231,906 226,022 142,045 325,890 111,315 90,409 75,284 78,214 48% 40% 53% 24% Sparkline BAYAN