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 $850,000 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 $850,000 in operating assets and fixed 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 companys contribution margin ratio is 11%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 11 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?
rosters.com is a small Internet retaller ot hign-qualty posters. I he company nas $b,U in operatng assets and txed 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 11%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 11 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? Complete this question by entering your answers in the tabs below. Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.)
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