This assignment uses an Excel workbook as the basis for a case study. The case study is a snapshot of the merchandise Item Sales Report in the Small Tools department of a retail hardware business. However, the information contained in the Item Sales Report could apply to any choice of products in any retail category, store, or business.Study and analyze the information in the workbook to complete the instructions below. Remember that financial analysis is more than just determining what the data reveals. Financial analysis requires managers to use the data to make decisions that will influence business results.Study the examples below to understand how the formulas are applied. Then, complete the assignment, following the instructions.Q: What is the difference between margin % and markup %? Why is it important to know the difference?A: The margin formula measures how much of each dollar of revenue the business has available for overhead expenses and profit after paying the supplier. The markup formula shows how much more the selling price is than the cost of goods sold (COGS). Understanding both formulas is important to strategic pricing. Markup % is always higher than margin %. A misunderstanding in using these formulas can result in prices that are too low or too high.Q: A new product is coming to your store. The cost to the store for each item (COGS) is $10. What should be the retail price if the company is seeking a 33% margin on the product?A: 100 – 33 = 67$10/67% = Retail Price/100%Retail Price = ($10×100%/67%)Retail Price = $14.9Q: What would be the retail price if your boss told you to use a 33% markup?A: 1.33 x $10 = $13.30 retail priceInstructionsUse course content, the skills you’ve practiced, and outside research to complete the calculations and answer the questions below regarding the case study. Use the following Excel workbook to answer them:1. Use retail math formulas to calculate the data required to complete the case study.-Open the Excel file to the tab labeled Item Sales Report. Study this spreadsheet and examine the mathematical relationships for Markup %, Margin %, % Total On-Hand, Sell Thru %, and % Total Sales.-Using the formulas, calculate the values and fill in the correct percentages for the empty cells in the spreadsheet.2. Use the data from the completed Item Sales Report spreadsheet to analyze the Small Tool business. When completing the following instructions, include any relevant data/numbers from the Item Sales Report to support your analysis (i.e., numbers that would affect change and address opportunities and liabilities in the Small Tool business).-Open the Excel file to the tab labeled Observations-In Text Box 1, identify at least three merchandise items that require action and explain why-In Text Box 2, develop and defend at least three recommended action steps to maximize sales and/or minimize liabilities for the merchandise items-In Text Box 3, indicate what additional data or information would have been helpful to you in your analysis