Answered step by step
Verified Expert Solution
Question
1 Approved Answer
IF YOU LOOK CLOSELY, THERE ARE CHECK FIGURES AT THE BOTTOM OF THE SECOND PAGE TO HELP OUT Dale Dcor Dale Dcor sells home dcor
IF YOU LOOK CLOSELY, THERE ARE CHECK FIGURES AT THE BOTTOM OF THE SECOND PAGE TO HELP OUT
Dale Dcor Dale Dcor sells home dcor 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 Catalog Sales Internet Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return $10,000,000 $4,000,000 $3,200,000 1,200,000 12% 4,000,000 1,500,000 1,800,000 4,500,000 8,000,000 4,000,000 2,000,000 1,000,000 12% 12% a. Calculate the profit margin, asset turnover, and ROI for each of the three distribution channels. 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 will invest in the system? Explain your reasoning bStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started