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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.

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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. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return Retail Stores $9.970,000 3,920,000 4.420,000 Internet $ 3.920,000 1.470,000 970,000 Catalog Sales $ 3,100,000 1.770,000 1.170,000 7.920,000 3,920,000 1,730,000 11% 11% 11% 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, e8. (5,125)) Residual Income $ Retail $ Online $ Catalog 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 $ 770.000 and is expected to generate $ 152,000 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, es. (5,1251) Residual Income Retail Online $ Catalog

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