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Sheridan Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center.
Sheridan 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:
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Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return Retail Stores Internet Catalog Sas $3,600,000 2,195,000 1,019,000 2,080,000 12% $12,033,000 $2,650,000 4,840,000 1399,000 6,729,000 1,193,000 5,926,000 2,660,000 12% 12% Your answer is incorrect. Try again. 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, e.g. -5,125 or parenthesis, e.g. (5,125).) Residual Income 17676000 Retail Online $ Catalog$ LINK TO TEXT LINK TO VIDEO Your answer is incorrect. Try again. The corporate office is giving the managers of each channel the option of a customer relationship maagement system that will allow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost $560,000 and is expected to generate $61,700 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, e.g. (5,125).) Residual Income Retail Online CatalogStep by Step Solution
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