Posters.com is a small Internet retailer of high-quality posters. The company has $740,000 in operating assets and fixed expenses of $164,000 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 companys contribution margin ratio is 12%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 12 cents.

Required:

1. Complete the following table showing the relation between sales and return on investment (ROI).

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