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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.
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: Internet Retail Stores $10,040,000 Catalog Sales Sales revenue $3,990,000 $3,240,000 Variable expenses 3,990,000 1,540,000 1.840,000 Direct fixed expenses 4,490,000 1.040,000 1.240,000 7.990,000 3.990,000 1,690,000 Average assets Required rate of return 11% 11% 11% ) (a) Calculate the current residual income for each distribution channel. Of 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 $
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