Question
Images.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $153,000 per year. With this
Images.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $153,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4.8 million per year. The companys 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.
Sales Net Op Inc Avg Opp Assets ROI%
4300000 770000
4400000 770000
4500000 770000
4600000 770000
4700000 770000
4800000 770000
1. Fill in Net Op Income
2. Increase in sales?
3. contribution margin ratio?
4. increase in cont margin & NOI?
5. Avg Op Assets?
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