Sunland 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 $9,758,800 3,935,000 4,750,332 7,870,000 12% Internet Catalog Sales $3,570,000 1,360,000 930,155 3,570,000 12% $3,870,000 1,820,000 1,829,410 1,935,000 12%
Sunland 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 $9,758,800 3,935,000 4,750,332 7,870,000 12% Internet Catalog Sales $3,570,000 1,360,000 930,155 3,570,000 12% $3,870,000 1,820,000 1,829,410 1,935,000 12%
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 37P
Related questions
Question
![Sunland 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
$9,758,800
3,935,000
4,750,332
7,870,000
12%
Internet
$3,570,000
1,360,000
930,155
3,570,000
12%
Catalog Sales
$3,870,000
1,820,000
1,829,410
1,935,000
12%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F72e21b62-2c60-42c9-8dab-160e635a0f49%2Ftxcrn8f_processed.png&w=3840&q=75)
Transcribed Image Text:Sunland 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
$9,758,800
3,935,000
4,750,332
7,870,000
12%
Internet
$3,570,000
1,360,000
930,155
3,570,000
12%
Catalog Sales
$3,870,000
1,820,000
1,829,410
1,935,000
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.)
Margin
Asset turnover
eTextbook and Media
Save for Later
(a2)
Retail Stores
ROI
Save for Later
Retail Stores
eTextbook and Media
%
Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.)
%
Internet
Internet
%
%
Catalog Sales
Attempts: 0 of 3 used
Catalog Sales
%
%
Submit Answer
Attempts: 0 of 3 used Submit Answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F72e21b62-2c60-42c9-8dab-160e635a0f49%2Fk9ch3r_processed.png&w=3840&q=75)
Transcribed Image Text:(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.)
Margin
Asset turnover
eTextbook and Media
Save for Later
(a2)
Retail Stores
ROI
Save for Later
Retail Stores
eTextbook and Media
%
Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.)
%
Internet
Internet
%
%
Catalog Sales
Attempts: 0 of 3 used
Catalog Sales
%
%
Submit Answer
Attempts: 0 of 3 used Submit Answer
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning