Question
Pharoah Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center.
Pharoah Decor sells home decor items through three distribution channelsretail 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 $11,303,200 $3,660,000 $5,742,000 Variable expenses 3,980,000 1,362,000 1,910,000 Direct fixed expenses 5,853,784 969,420 3,453,028 Average assets 7,960,000 3,660,000 1,980,000 Required rate of return 12% 12% 12% (a1) Calculate the margin and asset turnover for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12% or 5.12.)
Retail Stores Internet Catalog Sales Margin enter percentages % enter percentages % enter percentages % Asset turnover enter a ratio enter a ratio enter a ratio eTextbook and Media Attempts: 0 of 3 used (a2) Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.)
Retail Stores Internet Catalog Sales ROI enter percentages % enter percentages % enter percentages %
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