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crane decor

Exercise 10-15 Crane 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 Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return $12,031,000 $2,710,000 4,815,000 1,382,000 6,735,000 1,200,000 5,868,000 2,740,000 11% Catalog Sales $3,648,000 2,183,000 1,020,000 2,990,000 11% 11% 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 Retail Online Catalog
Your answer is incorrect. Try again. 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 $520,000 and is expected to generate $62,800 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 $ Catalog $ Click if you would like to Show Work for this question: Open Show Work
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