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Crane 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,
Crane 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: Internet Catalog Sales Retail Stores $10.020.000 Sales revenue $3.970,000 $3,200,000 3.970,000 1,520,000 1,820,000 4.470,000 1.020,000 1.220,000 Variable expenses Direct fixed expenses Average assets Required rate of return 7.970,000 3,970.000 1,710,000 11% 11% 11% (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, eg. 5,125 or parenthesis, e.. (5,125). Residual income $ Retail 5 Online $ Catalog
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