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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.
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 $9,589,200 $3,560,000 $3,667,000 Variable expenses 3,930,000 1,365,000 1,810,000 Direct fixed expenses 4,029,036 920,520 1,651,648 Average assets 7,860,000 3,560,000 1,930,000 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.) Retail Stores Internet Catalog Sales % Margin % Asset turnover e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (a2) Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.) Retail Stores Internet Catalog Sales ROI % % % eTextbook and Media Save for Later Attempts: 0 of 3 used Submit
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