Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribedimage text in transcribed
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 xed 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 O 0 0 Margin A A ' A Asset turnover I: eTextbook and Media Save for Later Attempts: 0 Of 3 USEd Submit Answer (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 eTextbook and Media Save for Later Attempts: 0 of 3 used Submit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

5th Edition

126078035X, 978-1260780352

More Books

Students also viewed these Accounting questions