ACC-650 TOPIC 7 Assignment Question 8 of 12 - 158 Sheridan 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 Catalog Sales Sales revenue $9,960,000 $3,910,000 $3,080,000 Variable expenses 3,910,000 1,460,000 1,760,000 Direct fixed expenses 4,410.000 960,000 1,160,000 Average assets 7,910,000 3,910,000 1,720,000 Required rate of return 129% 12 (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.g. (5,125).) Residual Income Retail Online Catalog e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (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 custo more effective in their marketing efforts. The system will cost $760.000 and is expected to generate $151,000 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, e.g. (5,125).) Residual Income Retail Online Catalog