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 $ 9,990,000 Sales revenue 3,940,000 Variable expenses Direct fixed expenses Average assets Internet $3.940,000 1.490,000 990,000 3,940,000 Catalog Sales $3.140,000 1,790,000 1.190,000 1.750,000 10% 4,440.000 7,940,000 Required rate of return 1096 1096 (a) 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 Save for Later Attempts: 0 of 3 used Submit Answer (b) The corporate office is giving the managers of each channel the option of a customer relationship management system that will allow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost $ 790,000 and is expected to generate $ 154,000 in additional annual segment margin. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, eg. (5,125).) Residual Income S Retail $ Online $ Catalog