Posters.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $163,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,900,000 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?

• 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	Average Operating	ROI
	Income	Assets	%
$4,400,000	$365,000	$770,000		%
$4,500,000		$770,000		%
$4,600,000		$770,000		%
$4,700,000		$770,000		%
$4,800,000		$770,000		%
$4,900,000		$770,000		%