Calculate the margin and asset turnover for each

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Question - 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

Internet

Catalog Sales

Sales revenue

$12,350,800

$3,720,000

$7,035,000

Variable expenses

4,010,000

1,369,000

1,970,000

Direct fixed expenses

6,611,688

989,480

4,558,480

Average assets

8,020,000

3,720,000

2,010,000

Required rate of return

12%

12%

12%

Required -

1. Calculate the margin and asset turnover for each of the three distribution channels.

2. Calculate the ROI for each of the three distribution channels.

Reference no: EM133001421

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