Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ivanhoe Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center.

Ivanhoe 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

$10,957,200 $3,640,000 $5,319,000

Variable expenses

3,970,000 1,365,000 1,890,000

Direct fixed expenses

5,781,908 957,320 3,088,584

Average assets

7,940,000 3,640,000 1,970,000

Required rate of return

12% 12% 12%

(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

enter percentages % enter percentages % enter percentages %

Asset turnover

enter a ratio enter a ratio enter a ratio

eTextbook 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

enter percentages % enter percentages % enter percentages %

eTextbook and Media

Save for Later

Attempts: 0 of 3 used

Submit Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: John Stittle, Robert Wearing

1st Edition

1412935024, 9781412935029

More Books

Students also viewed these Accounting questions

Question

Need help making this into a T account and Balance Sheet

Answered: 1 week ago

Question

How do you talk about your complaining customers?

Answered: 1 week ago