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 $780,000 in operating assets and fixed expenses of $151,000 per year. With this

image text in transcribed

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

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_2

Step: 3

blur-text-image_3

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

Using Microcomputers In Managerial Accounting

Authors: George Hildebrand

1st Edition

0938188275, 978-0938188278

More Books

Students also viewed these Accounting questions

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago