Exercise 10-15 Oriole 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 Sales revenue $12,041,000 Variable expenses 4,849,000 Direct fixed expenses 6,745,000 Average assets 5,260,000 Required rate of return 10% Internet $2,710,000 1,395,000 1,177,000 2,300,000 10% Catalog Sales $3,627,000 2,200,000 1,002,000 2,590,000 10% 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 $ LINK TO TEXT LINK TO VIDEO 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 $550,000 and is expected to generate $61,600 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