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: Retail Stores Internet Catalog Sales Sales revenue $9,910,000 $3,860,000 $3,010,000 Variable expenses 3,860,000 1,410,000 1,710,000 Direct fixed expenses 4,360,000 910,000 1,110,000 Average assets 7,860,000 3,860,000 1,960,000 Required rate of return 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, e.g. -5,125 or parenthesis, e.g. (5,125).) Retail Online Catalog $ LA +A Residual Income eTextbook and Media 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 customers and be more effective in their marketing efforts. The system will cost $710,000 and is expected to generate $146,000 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).) LA $ Residual Income Retail Online Catalog LA $ +A eTextbook and Media