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 $9,940,000 $3,890,000 $3,040,000 Variable expenses 3,890,000 1,440,000 1,740,000 Direct fixed expenses 4,390,000 940,000 1,140,000 Average assets 7,890,000 3,890,000 1,700,000 Required rate of return 12% 12% 12% (a) a 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, e.g. -5,125 or parenthesis, e.g. (5,125).) Residual Income $ Retail ta $ Online ta Catalog Touthool and Media (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 $740,000 and is expected to generate $149,000 in additional annual segment margin. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Residual Income $ Retail ta $ Online $ Catalog