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Exercise 1 0 - 1 0 ( Algo ) Cost - Volume - Profit Analysis and Return on Investment ( ROI ) [ LO 1
Exercise Algo CostVolumeProfit Analysis and Return on Investment ROILO
Posters.com is a small Internet retailer of highquality posters. The company has $ in operating assets and fixed expenses of $ per year. With this level of operating assets
and fixed expenses, the company can support sales of up to $ per year. The company's contribution margin ratio is which means that an additional dollar of sales results in
additional contribution margin, and net operating income, of cents.
Required:
Complete the following table showing the relation between sales and return on investment ROI
What happens to the company's return on investment ROI as sales increase?
Complete this question by entering your answers in the tabs below.
Required
Complete the following table showing the relation between sales and return on investment ROIRound your percentage answers to decimal places.
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