Question: Exercise 10-12 Carla Vista Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as
Exercise 10-12 Carla Vista 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 Sales revenue $12,011,000 Variable expenses 4,799,000 Direct fixed expenses 6,712,000 Average assets 6,000,100 Required rate of return 12% Internet $2,752,000 1,362,000 1,149,800 2,002,700 12% Catalog Sales $3,606,000 2,058,000 988,200 3,007,400 12% Calculate the margin and asset turnover for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12% or 5.12.) Retail Stores Internet Catalog Sales Margin Asset turnover Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12 .) Retail Stores Internet Catalog Sales ROI
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
