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Exercise 10-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) (L010-11 Posters.com is a small internet retailer of high quality posters. The company has $750,000 in
Exercise 10-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) (L010-11 Posters.com is a small internet retailer of high quality posters. The company has $750,000 in operating assets and food expenses of $152,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5.000.000 per year. The company's contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents. Required: 1 Complete the following table showing the relation between sales and return on investment (RO) 2. What happens to the company's return on investment (Rolas sales increase? Answer is not complete Complete this question by entering your answers in the tabs below. Required: Required 2 Complete the following table showing the relation between sales and returnement contund your Showers to 2 decimale) Not Operating Income $29.000 Average Operating Assets $ 750 000 4500.000 $ 750 000 4000.000 MacBook Air 4 20 DOR DODHE T U Y T W E 20 E L H F G D A S Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table showing the relation between sales and return on investment (ROI) answers to 2 decimal places.) Sales Net Operating Income ROI Average Operating Assets % $ 298,000 $ 750,000 % $ 750,000 % $ 4,500,000 $ 4,600,000 $ 4,700,000 S 4,800,000 $ 750,000 % $ 750,000 % 4,900,000 $ 750,000 5,000,000 $ 750,000 % Required 2 >
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