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Posters.com is a small Internet retailer of high-quality posters. The company has $870,000 in operating assets and fixed expenses of $157,000 per year. With this

Posters.com is a small Internet retailer of high-quality posters. The company has $870,000 in operating assets and fixed expenses of $157,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,200,000 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.

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?

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Complete this question by entering your answers in the tabs below. Required 1 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 Net Operating ROI Average Operating Assets Income % 870,000 % $ 4,700,000 $ $ 4,800,000 266,000 $ $ $ 870,000 % $ 4,900,000 870,000 % $ % $ 5,000,000 $ 5,100,000 $ 5,200,000 870,000 870,000 $ % $ 870,000 %

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