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Sandhill 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.
Sandhill 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 $9,990,000 $3,940,000 $3,140,000 Variable expenses 3,940,000 1,490,000 1,790,000 Direct fixed expenses 4,440,000 990,000 1,190.000 Average assets 7,940,000 3,940,000 1,750,000 Required rate of return 10% 10% 10% (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).) Residual Income $ Retail $ 10360000 Online $ Catalog
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