Sunland 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$9,758,8003,935,0004,750,3327,870,00012%Internet$3,570,0001,360,000930,1553,570,00012%Catalog Sales$3,870,0001,820,0001,829,4101,935,00012% (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.)MarginAsset turnovereTextbook and MediaSave for Later(a2)Retail StoresROISave for LaterRetail StoreseTextbook and Media%Calculate the ROI for each of the three distribution channels. (Round answers to 2 decimal places, e.g. 5.12%.)%InternetInternet%%Catalog SalesAttempts: 0 of 3 usedCatalog Sales%%Submit AnswerAttempts: 0 of 3 used Submit Answer

Net operating income :— It is the difference between sales revenue and operating expenses. Margin…

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%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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