Question
Blossom Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center.
Blossom Decor sells home decor items through three distribution channelsretail 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 $12,350,800 $3,720,000 $7,035,000
Variable expenses, 4,010,000 1,369,000 1,970,000
Direct fixed expenses 6,611,688 989,480 4,558,480
Average assets 8,020,000 3,720,000 2,010,000
Required rate of return 12% 12% 12%
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
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