Refer to Exercise 10 12 Thursday Afternoon sells housewares through three distribution channels retail stores, Internet, and catalog sales Each distribution channel is evaluated as an investment center Selected results from the latest year are as follows Required a Calculate the current residual in...

a Retail 12000000 4800000 6720000 126000000 240000 Online 2750000 1375000 11550 ...

Refer to Exercise 10-12. Thursday Afternoon sells housewares through three distribution channels-retail stores, Internet, and catalog sales.

Question:

Refer to Exercise 10-12.
Thursday Afternoon sells housewares through three channels-retail stores, Internet, and catalog sales. Each channel is evaluated as an investment center. Selected results from the latest year are as follows:

Required
a. Calculate the current residual income for each channel.
b. Calculate the residual income of each channel assuming it purchases the new customer relationship management system.
c. Why is the residual income for each channel higher in part (b) than in part (a)?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...