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- 15 View Policies Current Attempt in Progress Sunland Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each
- 15 View Policies Current Attempt in Progress Sunland 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: Retail Stores Internet Sales revenue $ 10,080,000 $ 4,030,000 Catalog Sales $3,320,000 1.880,000 4,030,000 1.580,000 4,530,000 1.080,000 Variable expenses Direct fixed expenses Average assets Required rate of return 1.280,000 8,030,000 4,030,000 1.650.000 12% 12% 12% (a) (a) Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.s. (5.125).) Residual Income $ SA Retail $ Online 6 Catalog 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 $ 880,000 and is expected to generate $ 163,000 in additional annual segment margin. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, eg. (5,125).) Residual Income $ Retail $ Online $ Catalog e Textbook and Media Sove for Later Attempts: 0 of 3 used Submit
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