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Posters.com is a small Internet retailer of high - quality posters. The company has $ 7 6 0 , 0 0 0 in operating assets

Posters.com is a small Internet retailer of high-quality posters. The company has $760,000 in operating assets and fixed expenses of $165,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,100,000 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.
Required:
1. Complete the following table showing the relation between sales and return on investment (ROI).
Sales Net Operating
Income Average Operating Assets ROI
$4,600,000 $203,000 $760,00026.71%
$4,700,000 $760,000%
$4,800,000 $760,000%
$4,900,000 $760,000%
$5,000,000 $760,000%
$5,100,000 $760,000%

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