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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

$ 10,030,000 $ 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%

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(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 Asset turnover e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (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 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit

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