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Wildhorse Decor sells home decor items through three distribution channels - retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an
Wildhorse 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:
tableRetail Stores,Internet,Catalog SalesSales revenue,$$$
BThe corporate office is giving the managers of each channel the option of a customer relationship management system that will allow managers to gather data about their customersand be more efficient in their marketing efforts. The system will cost $ and is expected to generate $ In additional annual segment margin. calculate the residual income of each distribution channel, assuming it purchases the new customer relationship management system. Only answer part B please.
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