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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:
(a) Calculate the margin and asset turnover for each of the three distribution channels: Retail Stores Internet Catalog Sales (b)Calculate the ROI for each of the three distribution channels
Ivanhoe 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 Internet Catalog Sales Sales revenue $ 9.082,800 $ 3,530,000 $ 3,064,000 3,915.000 Variable expenses 1,373.000 1.780.000 3,896,208 Direct fixed expenses 898,555 1,121.608 7.830.000 3.530,000 1.915.000 Average assets 12% 12% 12% Required rate of returnStep by Step Solution
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