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Posters.com is a small Internet retailer of high-quality posters. The company has $890,000 in operating assets and fixed expenses of $155.000 per year. With this
Posters.com is a small Internet retailer of high-quality posters. The company has $890,000 in operating assets and fixed expenses of $155.000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4.800.000 per year. The company's 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). 2 What happens to the company's return on investment (ROI) as sales increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Sales Net Operating Average Operating ROI Income 189,000 $ Assets % S 890,000 96 s 890,000 96 s 890,000 96 S 4,300,000 S 4,400,000 S 4,500,000 S 4,600,000 S 4,700,000 S 4,800,000 s 890,000 9 S 890,000 96 s 890,000 96 (Required 1 Required 2 > Required 1 Required 2 What happens to the company's return on investment (ROI) as sales increase? Increases Decreases
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