Question
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
$10,030,000 $3,980,000 $3,220,000
Variable expenses
3,980,000 1,530,000 1,830,000
Direct fixed expenses
4,480,000 1,030,000 1,230,000
Average assets
7,980,000 3,980,000 1,700,000
Required rate of return
12% 12% 12%
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).)
Residual Income
Retail
$________
Online
$_________
Catalog
$_______
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started