Thursday Afternoon sells housewares through three distribution channels-retail stores, Internet, and catalog sales. Each distribution channel is

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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:

Thursday Afternoon sells housewares through three distribution channels-retail stores, Internet,


Required

a. Calculate the margin, asset turnover, and ROI for each of the three distribution channels.

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 $500,000 and is expected to generate $65,000 in additional annual segment margin. If distribution channel managers are evaluated based on the trend of their ROIs, which managers will invest in the system? Explain your reasoning.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For  answer-question

Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

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