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Images.com is a small Internet retailer of high-quality posters. The company has $830,000 in operating assets and fixed expenses of $154,000 per year. With this
Images.com is a small Internet retailer of high-quality posters. The company has $830,000 in operating assets and fixed expenses of $154,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5.3 million per year. The company's contribution margin ratio is 8%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 8 cents. Complete the following table showing the relationship between sales and return on investment (ROI): (Round your percentage answers to 2 decimal places.) What happens to the company's return on investment (ROI) as sales increase? (Round your answer to 2 decimal places.)
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