Question
Exercise 10-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) [LO10-1] Posters.com is a small Internet retailer of high-quality posters. The company has $820,000 in operating
Exercise 10-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) [LO10-1]
Posters.com is a small Internet retailer of high-quality posters. The company has $820,000 in operating assets and fixed expenses of $167,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,800,000 per year. The companys contribution margin ratio is 9%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 9 cents.
Required:
1. Complete the following table showing the relation between sales and return on investment (ROI).
2. What happens to the companys return on investment (ROI) as sales increase?
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Exercise 10-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) (LO10-1] points Posters.com is a small Internet retailer of high-quality posters. The company has $820,000 in operating assets and fixed expenses of $167,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,800,000 per year. The company's contribution margin ratio is 9%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 9 cents. Required: 1. Complete the following table showing the relation between sales and return on investment (ROI). 2. What happens to the company's return on investment (ROI) as sales increase? 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). (Round your percentage answers to 2 decimal places.) Sales ROL Net Operating Income Average Operating Assets $ 820,000 4.300.000 00 $ 220,000 $ 820,000 4,400,000 $ 820,000 4,500,000 4,600,000 $ 820,000 4.700.000 $ 820,000 $ 820,000 4,800,000 (Required 1 Required 2 >Step by Step Solution
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