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 $10,030,000 $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% (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, e.g. -5,125 or parenthesis, e.g. (5,125).) Residual Income $ Retail $ Online $ Catalog e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) 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 $830,000 and is expected to generate $158,000 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, e.g. -5,125 or parenthesis, e.g. (5,125).) Residual Income $ Retail $ Online $ Catalog e Textbook and Media Save for Later Attempts: 0 of 3 used Submit