ACC-650 TOPIC 7 Assignment Question 8 of 12 > 2.5/5 Sanum Decor sens nome 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 $10,100,000 $4,050,000 $3,360,000 Variable expenses 4,050,000 1,600,000 1,900,000 Direct fixed expenses 4,550,000 1,100,000 1,300,000 Average assets 8,050,000 4,050,000 1,630,000 Required rate of return 11% 11% 11% (a) Your answer is correct. 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).) (b) $ Retail Residual Income 614,500 $ Online 904,500 $ Catalog -19,300 eTextbook and Media Your answer is incorrect. Attempts: 1 of 3 used 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 $900,000 and is expected to generate $165,000 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 eTextbook and Media Save for Later Assistance Used Attempts: 1 of 3 used Submit Answer