Wildhorse Dcor sells home dcor items through three distribution channelsretail stores, the internet, and catalog...
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Wildhorse Dcor sells home dcor items through three distribution channelsretail stores, the internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the last year are as follows: b. The corporate office is giving 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 $910,000 and is expected to generate $166,000 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.
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