Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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

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

Financial Accounting Theory

Authors: William R. Scott, Patricia O'Brien

8th Edition

013416668X, 978-0134166681

More Books

Students also viewed these Accounting questions

Question

Consider a M/G/1 system with E[S] Answered: 1 week ago

Answered: 1 week ago

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago