Cullumber 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 Catalog Sales Sales revenue $10,140,000$ 4,090,000 $3,420,000

Variable expenses 4,090,0001,640,000 1,940,000

Direct fixed expenses 4,590,0001,140,000 1,340,000

Average assets 8,090,000 4,090,0001,590,000

Required rate of return 10% 10% 10%

B)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 $940,000 and is expected to generate $169,000 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. $