Question

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




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  • CreatedFebruary 21, 2014
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