Daie Decor sells home decor items through three distribution chanoets-retall stores, the internet, and catalog sales. Each distribution channel is evaluated as an investment center 5elected results from the latest year are as follows: QUI a. Calculate the profit margin, asset turnover, and ROI for each of the three distribution channels. 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 $800,000 and is expected to generate $160,000 in additional annual segment margin. If distribution channel managers are evaluated based on the trend of their ROls, which managers withinvest int the c. Calculate the current residual income for each distribution channel. d. Calculate the residual income of the customer relationship management system. e. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system (combined residual income). f. What do you notice when comparing each division's combined residual income in part e. to their current residual income (prior to purchasing the CqM system) in part c ? By how much did they each increase? 8. If distribution channel managers are evaluated based on residual income, which managers will invest in the system? Explain your reasoning. e. Internet: 51,084,000, it, All Daie Decor sells home decor items through three distribution chanoets-retall stores, the internet, and catalog sales. Each distribution channel is evaluated as an investment center 5elected results from the latest year are as follows: QUI a. Calculate the profit margin, asset turnover, and ROI for each of the three distribution channels. 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 $800,000 and is expected to generate $160,000 in additional annual segment margin. If distribution channel managers are evaluated based on the trend of their ROls, which managers withinvest int the c. Calculate the current residual income for each distribution channel. d. Calculate the residual income of the customer relationship management system. e. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system (combined residual income). f. What do you notice when comparing each division's combined residual income in part e. to their current residual income (prior to purchasing the CqM system) in part c ? By how much did they each increase? 8. If distribution channel managers are evaluated based on residual income, which managers will invest in the system? Explain your reasoning. e. Internet: 51,084,000, it, All