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Posters.com is a small Internet retailer of high-quality posters. The company has $780,000 in operating assets and fixed expenses of $151,000 per year. With this
Posters.com is a small Internet retailer of high-quality posters. The company has $780,000 in operating assets and fixed expenses of $151,000 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: 1. Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34):) ROI % Sales Net Operating Average Operating Income Assets 4,800,000 $ 281,000 $ 780,000 4,900,000 $ 780,000 $ 780,000 5,000,000 $ 780,000 5,100,000 5,200,000 $ $ 780,000 780,000 5,300,000
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