Posters.com is a small Internet retailer of high-quality posters. The company has $710,000 in operating assets and fixed expenses of $153,000 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 companys 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.

SalesNet OperatingAverage OperatingROIIncomeAssets%$4,800,000$279,000$710,000$4,900,000$710,000$5,000,000$710,000$5,100,000$710,000$5,200,000$710,000$5,300,000$710,000