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Sunland 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.
Sunland 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 $9,970,000 $3,920,000 $3,100,000 Variable expenses 3,920,000 1,470,000 1,770,000 Direct fixed expenses 4,420,000 970,000 1,170,000 Average assets 7,920,000 3,920,000 1,730,000 Required rate of return 11% 11% 11% (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, e.g. -5,125 or parenthesis, e.g. (5,125).) Retail +A $ Online $ Catalog Residual Income
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