Owe 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$790,000 and is expected to generate $154,000 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))Residual IncomeRetailOnlineCatalog$$SX Sandhill 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 returnRetail Stores Internet$9,990,0003,940,0004,440,0007,940,00010%$3,940,0001,490,000990,0003,940,00010%Catalog Sales$3,140,0001,790,0001,190,0001,750,00010%

Operating income is the difference between total revenue and total operating expense of the…

Sandhill 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: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return Retail Stores Internet $9,990,000 3,940,000 4,440,000 7,940,000 10% $3,940,000 1,490,000 990,000 3,940,000 10% Catalog Sales $3,140,000 1,790,000 1,190,000 1,750,000 10%