Pharoah 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 $9,420,000 $3,550,000 $3,465,000 Variable expenses 3,925,000 1,369,000 1,800,000 Direct fixed expenses 3,987,800 911,875 1,474,425 Average assets 7,850,000 3,550,000 1,925,000 Required rate of return 12% 12% 12%