ZuoTi.Pro
Question
crane decor

Exercise 10-15 Crane 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 Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return $12,031,000 $2,710,000 4,815,000 1,382,000 6,735,000 1,200,000 5,868,000 2,740,000 11% Catalog Sales $3,648,000 2,183,000 1,020,000 2,990,000 11% 11% Your answer is incorrect. Try again. 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)) Residual Income Retail Online Catalog
Your answer is incorrect. Try again. The corporate office is giving the managers of each channel the option of a customer relationship management system that will allow the managers to gather data about their customers and be more effective in their marketing efforts. The system will cost $520,000 and is expected to generate $62,800 in additional annual segment margin. Calculate the residual income of each distribution channel assuming it purchases the new customer relationship management system. (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 Income Retail Online $ Catalog $ Click if you would like to Show Work for this question: Open Show Work
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Hi

Let me know in case you face any issue:

Answers are highlighted in yellow: Solution: Step.01 (Actual net income) 1) Sales Less: Variable cost Less: Direct Fixed Expense Actual Net Operating Income Retai Internet Catalo 12031000 2710000 3648000 -4815000-1382000 -2183000 6735000-1200000 -1020000 481000 128000 445000 1) Average Operating Assets Required rate of return Required Net Operating income Actual Net Operating Income Residual Income Retai Internet Catalog 5868000 2740000 2990000 11% 645480 301400 328900 481000 128000 445000 164480 173400 116100 11% 11% 1) Retail 164480 173400 116100 Internet Catalog

2) Average Operating Assets Required rate of return Required Net Operating income Actual Net Operating Income Residual Income Reta Internet Catalog 6388000 3260000 3510000 11% 702680 358600 386100 543800 190800 507800 -158880 -167800 121700 11% 11% 2) Retail 158880 167800 121700 Internet Catalog

0 0
Add a comment
Know the answer?
Add Answer to:
crane decor Exercise 10-15 Crane Decor sells home decor items through three distribution channels-retail stores, the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Exercise 10-15 (Part Level Submission) Blossom Decor sells home decor items through three distribution channels-retail stores,...

    Exercise 10-15 (Part Level Submission) Blossom 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 Sales revenue $12,035,000 Variable expenses 4,819,000 Direct fixed expenses 6,730,000 Average assets 5,281,000 Required rate of return Internet $2,740,000 1,377,000 1,196,000 2,930,000 12% Catalog Sales $3,623,000 2,176,000 996,000 2,990,000 12% 12% v (a) x Your answer is incorrect. Try...

  • Dale Decor sells home decor items through three distribution channels—retail stores, the Internet, and catalog sales....

    Dale 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 $10,000,000 $4,000,000 $3,200,000 Variable expenses 4,000,000 1,500,000 1,800,000 Direct fixed expenses 4,500,000 1,000,000 1,200,000 Average assets 8,000,000 4,000,000 2,000,000 Required rate of return 12% 12% 12% Collapse question part (a) Calculate the current residual income for each distribution channel....

  • 10-12 Return on investment (LO 3) Dale Decor sells home decor items through three distribution channels-retail...

    10-12 Return on investment (LO 3) Dale 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: 12% Retail Stores Internet Catalog Sales Sales revenue $10,000,000 $4,000,000 $3,200,000 Variable expenses 4,000,000 1,500,000 1,800,000 Direct fixed expenses 4,500,000 1,000,000 1,200,000 Average assets 8,000,000 4,000,000 2,000,000 Required rate of return 12% 12% Required a. Calculate the margin, asset turnover,...

  • 10-12 Return on investment (LO 3) Dale Decor sells home decor items through three distribution channels-retail...

    10-12 Return on investment (LO 3) Dale 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 $10,000,000 $4,000,000 $3,200,000 Variable expenses 4,000,000 1,500,000 1,800,000 Direct fixed expenses 4,500,000 1,000,000 1,200,000 Average assets 8,000,000 4,000,000 2,000,000 Required rate of return 12% 12% 12% Required a. Calculate the margin, asset turnover,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT