Question: Ivanhoe Decor sells home decor items through three distribution channelsretail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center.

Ivanhoe Decor sells home decor items through three distribution channelsretail 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

$10,957,200 $3,640,000 $5,319,000

Variable expenses

3,970,000 1,365,000 1,890,000

Direct fixed expenses

5,781,908 957,320 3,088,584

Average assets

7,940,000 3,640,000 1,970,000

Required rate of return

12% 12% 12%

(a1)

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

enter percentages % enter percentages % enter percentages %

Asset turnover

enter a ratio enter a ratio enter a ratio

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(a2)

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

enter percentages % enter percentages % enter percentages %

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