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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
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 $12,703,200 $3,740,000 $7,474,000 Variable expenses 4,020,000 1,355,000 1,990,000 Direct fixed expenses 6,650,688 1,012,420 4,930,924 Average assets 8,040,000 3,740,000 2,020,000 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.) Margin Asset turnover Retail Stores Internet Catalog Sales % % % |
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