Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE CORRECT Posters.com is a small Internet retailer of high-quality posters. The company has $830,000 in operating assets and fixed expenses of $150,000 per year.

PLEASE CORRECT

image text in transcribed

Posters.com is a small Internet retailer of high-quality posters. The company has $830,000 in operating assets and fixed expenses of $150,000 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: Complete the following table showing the relation between sales and return on investment (ROI) (rounded). (Round your percentage answers to 2 decimal places.) What happens to the company's return on investment (ROI) as sales increase? Increases Decreases

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Alternative Minimum Tax For Individuals IRS Audit Technique Guide ATG

Authors: Internal Revenue Service

1st Edition

1304131556, 978-1304131553

More Books

Students also viewed these Accounting questions

Question

Types of Interpersonal Relationships?

Answered: 1 week ago

Question

Self-Disclosure and Interpersonal Relationships?

Answered: 1 week ago