Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Cullumber 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 $10,784,800 $3,630,000 $5,109,000
Variable expenses 3,965,000 1,360,000 1,880,000
Direct fixed expenses 4,986,384 957,755 2,907,133
Average assets 7,930,000 3,630,000 1,965,000
Required rate of return 12% 12% 12%

(a1)

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

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

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

3rd edition

978-1119234173, 1119234174, 1119343615, 978-1119182078, 1119182077, 978-1119234074, 1119234077, 978-1119343615

More Books

Students also viewed these Accounting questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago