Cullumber 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 $10,140,000 $4,090,000 $3,420,000 Variable expenses 4,090,000 1,640,000 1,940,000 Direct fixed expenses 4,590,000 1,140,000 1,340,000 Average assets 8,090,000 4,090,000 1,590,000 Required rate of return 10% 10% 10% (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, eg. (5,125)) Residual Income Retail Online Catalog Question 8 of 12 < > Save for Later (b) -/5 ! Attempts: 0 of 3 used Submit Answer 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 $940,000 and is expected to generate $169,000 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, eg. -5,125 or parenthesis, eg. (5,125)) Residual Income $ Retail $ Online Catalog $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit