Images.com is a small Internet retailer of high-quality posters. The company has $720,000 in operating assets and fixed expenses of $151,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5.4 million per year. The companys contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents.

Required:
1.	Complete the following table showing the relationship between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places. Omit the "$" and "%" signs in your response.)

Sales	Net Operating Income	Average Operating Assets	ROI
$4,900,000	$339,000	$720,000	%
$5,000,000	$	$720,000	%
$5,100,000	$	$720,000	%
$5,200,000	$	$720,000	%
$5,300,000	$	$720,000	%
$5,400,000	$	$720,000	%

2.	What happens to the company's return on investment (ROI) as sales increase? (Round your answer to 2 decimal places. Omit the "%" sign in your response)

ROI

(Click to select)decreases byincreases bywill not change

%