Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom 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.
Blossom 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 $8,580,000 $3,500,000 $2,470,000 Variable expenses 3,900,000 1,355,000 1,750,000 Direct fixed expenses 3,736,200 902,500 596,500 Average assets 7,800,000 3,500,000 1,900,000 Required rate of return 12% 12% 12% (a1) Calculate the margin and asset turnover for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12% or 5.12.) Retail Stores Internet Catalog Sales % % Margin Asset turnover(a2) Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.) Retail Stores Internet Catalog Sales % % % ROI
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started