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Posters.com is a small Internet retailer of high-quality posters. The company has $770,000 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 $770,000 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 $4,800.000 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). 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: 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 ROI Net Operating Income Average Operating Assets % S 4,300,000 S 238,000 $ 770,000 % $ 770,000 % 4.400,000 $ 770,000 4,500,000 S 4,600,000 $ 770,000 % 5 770,000 96 4,700.000 S 770,000 % 4,800,000 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 What happens to the company's return on investment (ROI) as sales increase? Increases Decreases
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