Solution-Calculate the roi for each of the three

Calculate the roi for each of the three distribution channel

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Reference no: EM133138814

Question - Ivanhoe 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	$10,957,200	$3,640,000	$5,319,000
Variable expenses	3,970,000	1,365,000	1,890,000
Direct fixed expenses	5,781,908	957,320	3,088,584
Average assets	7,940,000	3,640,000	1,970,000
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: EM133138814

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Calculate the roi for each of the three distribution channel

Reference no: EM133138814

Reference no: EM133138814

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