Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center.

Crane 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 $8,747,200 $3,510,000 $2,667,000
Variable expenses 3,905,000 1,359,000 1,760,000
Direct fixed expenses 3,792,536 903,195 770,983
Average assets 7,810,000 3,510,000 1,905,000
Required rate of return 12% 12% 12%

1) 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

enter percentages %

enter percentages %

enter percentages %

Asset turnover

enter a ratio

enter a ratio

enter a ratio

2) 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

ROIenter percentages %enter percentages %enter percentages %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comprehensive Assurance & Systems Tool An Integrated Practice Set

Authors: Laura R Ingraham, J Greg Jenkins

3rd Edition

0133251969, 9780133251968

More Books

Students also viewed these Accounting questions

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago