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Exercise 9-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) [LO9-1] Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating
Exercise 9-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) [LO9-1] Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of $170,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5.300.000 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) (Round your percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Average Sales Net Operating Operating ROI Income Assets 4,800,000 4,900,000 5,000,000 5,100,000 5,200,000 5,300,000 $ 262,000$ 790,000 $ 790,000 $ 790,000 $ 790,000 $ 790,000 $ 790,000 2. What happens to the company's return on investment (ROI) as sales increase? O Increases Decreases
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