Posters.com is a small Internet retailer of high-quality posters. The company has $780,000 inoperating assets and fixed expenses of $150,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,900,000per 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).(Round your percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Please show work.

sales Net Operating Income Average Operating Assets ROI%

See Attachment

2.What happens to the company's return on investment (ROI) as sales increase?

Increases or Decreases

Sales Net Operating Income $4,400,000 $4,500,000 $4,600,000 $4,700,000 $4,800,000 $4,900,000 202,000 ? ? ? ? ? Average Operating Assets $780,000 $780,000 $780,000 $780,000 $780,000 $780,000 ROI%