Calculate the margin and asset turnover for each channels

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Question - 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

Catalog Sales

Sales revenue

$10,612,800

$3,620,000

$4,900,000

Variable expenses

3,960,000

1,364,000

1,870,000

Direct fixed expenses

4,954,752

949,180

2,726,200

Average assets

7,920,000

3,620,000

1,960,000

Required rate of return

12%

12%

12%

Required -

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

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

Reference no: EM133038422

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