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Posters.com is a small Internet retailer of high - quality posters. The company has $ 7 9 0 , 0 0 0 in operating assets

Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of $160,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,400,000 per year. The company's contribution margin ratio is 11%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 11 cents.
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