Blossom Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Eachdistribution channel is evaluated as an investment center. Selected results from the latest year are as follows:Sales revenueVariable expensesDirect fixed expensesAverage assetsRequired rate of return(a)RetailOnlineCatalog$$Retail Stores Internet$$10,120,0004,070,0004,570,0008,070,00012%$4,070,000Residual Income.1,620,0001,120,0004,070,00012%Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative signpreceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).)Catalog Sales$3,400,0001,920,0001,320,0001,610,00012% The corporate office is giving the managers of each channel the option of a customer relationship management system that willallow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost$920,000 and is expected to generate $167,000 in additional annual segment margin.Calculate the residual income of each distribution channel assuming it purchases the new customer relationship managementsystem. (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).)RetailOnlineCatalog$$$Residual Income

A) Retail Interest Catalog Residual Income $5,11,600.00 $8,41,600.00 -$33,200.00…

Answered: Calculate the current residual income…

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).)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8PA: The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K):...

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