Question

2.88 The following summary table presents the breakdown of the price of a new college textbook: Revenue Category Source: Data extracted from www.nacs.org/LinkClickaspx?file ticket=Jz-CFOW70M%3D. Percentage (%) 64.8 Publisher Manufacturing costs 32.3 Marketing and promotion 15.4 Administrative costs and taxes After-tax profit Bookstore 22.4 Employee salaries and benefits Operations o Pretax profit 45 Author 11.6 Freight a. Using the four categories of publisher, bookstore, author, and freight, construct a bar chart, a pie chart, and a Pareto chart. b. Using the four subcategories of publisher and three subcategories of bookstore, along with the author and freight categories, construct a Pareto chart. C. Based on the results of (a) and (b), what conclusions can you reach concerning who gets the revenue from the sales of new college textbooks? Do any of these results surprise you? Explain.

Answer 1

$\\ \textrm{(a)}$

Revenue Category Bar Chart Freight 1 Author REVENUE CATEGORY Z Bookstore Publisher 0 10 40 50 60 70 20 30 PERCENTAGE

   

Pie Chart Publisher Bookstore Author Freight

Pareto Chart 100% 90% 80% 70% 60% 40% 30% Publisher Bookstore Author Freight

$\\ \textrm{(b)}$

  

Manufacturing Cost Marketing and... Author Employee salaries... Administrative costs... Pareto Chart After tax Profit Operations Pre-tax profit Freight 20% 30% 40% 50% 60% 70% 80% 90% 100%

$\\ \textrm{(c)}\\ $Try to draw the conclusions based on your observations.$