Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Posters.com is a small Internet retailer of high - quality posters. The company has $ 8 7 0 , 0 0 0 in operating assets

Posters.com is a small Internet retailer of high-quality
posters. The company has $870,000 in operating assets and fixed
expenses of $157,000 per year. With this level of operating assets
and fixed expenses, the company can support sales of up to
$5,200,000 per year. The companys 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).2. What happens to the companys return on investment (ROI) as
sales increase?
image text in transcribed

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

Step: 3

blur-text-image

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

Portfolio Of Marketing Audits Company Self Assessment Audits

Authors: David Crosby

1st Edition

1902433157, 978-1902433158

More Books

Students also viewed these Accounting questions