Business, 24.04.2020 04:16 fish64

Wildhorse 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:

Retail Stores Internet Catalog Sales
Sales revenue $12,010,000 $2,763,000 $3,610,000
Variable expenses 4,787,000 1,365,000 2,157,000
Direct fixed expenses 6,714,000 1,152,400 987,200
Average assets 6,001,400 2,010,000 3,009,800
Required rate of return 12% 12% 12%

Calculate the current residual income for each distribution channel.

Answers: 3

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Wildhorse Decor sells home decor items through three distribution channels—retail stores, the Intern...