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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.
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: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return Retail Stores $10,060,000 4,010,000 4.510.000 8.010,000 10% Internet $4.010,000 1.560,000 1,060,000 4.010,000 10% Catalog Sales $3.260,000 1.860.000 1.260.000 1.670,000 10% (a) 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 $ $ $ Online Catalog e Textbook and Media
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