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only need help with f and g Need help asap!! thank you! Dale Dcor Dale Dcor sells home decor items through three distribution channels--retail stores,
only need help with f and g
Need help asap!!
Dale Dcor Dale Dcor 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: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return Retail Catalog Stores Internet Sales $10,000,000 $4,000,000 $3,200,000 4,000,000 1,500,000 1,800,000 4,500,000 1,000,000 1,200,000 8,000,000 4,000,000 2,000,000 12% 12% 12% a. Calculate the profit margin, asset turnover, and ROI for each of the three distribution channels, 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 $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. c. Calculate the current residual income for each distribution channel. d. Calculate the residual income of the customer relationship management system e. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system (combined residual income). f. What do you notice when comparing each division's combined residual income in part e. to their current residual income (prior to purchasing the CRM system) in part c.? By how much did they each increase? g. if distribution channel managers are evaluated based on residual income, which managers will invest in the system? Explain your reasoning Check ukures Retail Profit Margin-15%, ATO - 1:25, ROI 18.75%; b. Internet Manager Rejectc. Catalog: ($40,000); e. Internet: $1,084,000, All 10 thank you!
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