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Sandhill Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment
Sandhill 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 $10,099,200 $3,590,000 $4,279,000 Variable expenses 3,945,000 1,374,000 1,840,000 Direct fixed expenses 4,841,304 925,395 2,186,539 Average assets 7,890,000 3,590,000 1,945,000 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.) Margin Asset turnover (a2) Retail Stores Internet Catalog Sales % % % Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.) ROI Retail Stores Internet Catalog Sales % % %
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