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iew Policies how Attempt History Current Attempt in Progress Wildhorse Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales.
"iew Policies how Attempt History Current Attempt in Progress Wildhorse 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: Catalog Sales Retail Stores Internet $10,110,000 $4,060,000 Sales revenue $3,380,000 Variable expenses 4.060.000 1,610,000 1.910.000 Direct fixed expenses 4,560,000 1.110.000 1,310.000 Average assets 8,060,000 4,060,000 1,620.000 Required rate of return 11% 11% 11% (a) a Your Answer Correct Answer (Used) ) Your answer is correct. 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, eg: (5,125).) Residual Income $ 603400 Retail Online 893400 $ -18200 Catalog e Textbook and Media Solution Attempts: 3 of 3 used : (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 $910,000 and is expected to generate $ 166,000 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, eg. -5,125 or parenthesis, eg: (5,125).) Residual Income $ Retail $ Online $ Catalog e Textbook and Media Save for Later Attempts: 0 of 3 used Submit
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