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Please answer part B Oriole Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated

Please answer part B

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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 4,290 000 940.000 1 140,000 Averageassets 7,890.000 3.890,000 1,700,000 Required rate of reburn 12% 12% 12% (a) Your answer is correct. 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. 1 -5.125 or Dormantbeak, ep (5,1251] Residual Income Fortail 710200 Online Catalog 145060 Textbook and Media Assistance Used Attempts: 2 of Jused Your answer is incorrect The corporate other is giving the managers of each channel the option of a custo arnelattic t system that will allow the manager 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 distrib ition chanmel assuming it purchases the new cus tent system. if the residual income is a less than enter with a pegsthe sign preceding the number, ex -5.125 or parenthesis, es (5.125)) Residual Income

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