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Oriole 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.
Oriole 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 $10,050,000 $4,000,000 $3,240,000 Variable expenses 4,000,000 1,550,000 1,850,000 Direct fixed expenses 4,500,000 1,050,000 1,250,000 Average assets 8,000,000 4,000,000 1,680.000 Required rate of return 10% 10% 10% (a) X Your answer is incorrect. Calculate the current residual income for each distribution channel. (If 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 1395000 Online Catalog $ eTextbook and Media
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