Sheridan 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 $10,070,000 $4,020,000 $3,280,000 Variable expenses 4,020,000 1,570,000 1,870,000 Direct fixed expenses 4,520,000 1,070,000 1,270,000 Average assets 8,020,000 4,020,000 1,660,000 Required rate of return 10% 10% 10% 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, eg.-5,125 or parenthesis, eg. (5,125)) Residual Income Retail 728,000 Online $ 978.000 Catalog 26,000 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 $870,000 and is expected to generate $162,000 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, eg. -5,125 or parenthesis, e.g. (5,125)) Residual Income Retail Online $ $ Catalog