10-12 Return on investment (LO 3) Dale Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses 4500,000 Average assets Required rate of return Retail Stores Internet Catalog Sales $10,000,000 $4,00,00$3,200,o00 4,000,000 1,500,0001,800,0oo 1,000,00O1,200,000 8,00,000 4,000,000 2,000,000 12% 12% 12% Required Calculate the margin, asset turnover, and ROI for each of the three distribution channels. a. b. The corporate office is giving the managers of each channel the option of a customer relationship management system that will allow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost $800,00o and is expected to generate $160,000 in additional annual segment margin. If distribution channel managers are evaluated based on the trend of their ROIs, which managers will invest in the system? Explain your reasoning