Question 8 of 12

Question 8 of 12 -15 Carla Vista 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: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return (a) Retail Stores SIO.090,ooo 4040.000 4.540,ooo 8.040000 11% Internet S4040.ooo 1.590000 1-090.000 4.040000 Catalog Sales 93.340000 1.890000 1.290000 1.640000 Calculate the current residual irrorne for each distribution channel (N is a t.tm Mth a son tte -5.125 Ot ea. Residual Income s Retail Online Catalog eTextbook and Medla Save for Latc' Attempts: O of 3 used The corporate office is giving thc managers of each channel the of a customer relationship management system that will allow thc managers to gather data about their customers and be morc effective in their marketing efforts. The system will cost S890DOO and is excrcted to generate $ 164,000 in annual segment margin. Calculate thc residual income of each distribution channel assuming it purchases the nerv customer relationship management system. (Ifthe re.sJdLII a loss then enter with a nqotjve sign predlrv nur&r. ea. -5,125 (5.125)) Residual Income Retail Online Catalog 17 G)