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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)

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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

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(a2)

Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.)

Retail Stores Internet Catalog Sales
ROI

enter percentages %

enter percentages %

enter percentages %

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