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Posters.com is a small Internet retailer of high-quality posters. The company has $300,000 in operating assets and fioxed expenses of 5150,000 per year. With this
Posters.com is a small Internet retailer of high-quality posters. The company has $300,000 in operating assets and fioxed expenses of 5150,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to S4. 500,000 per year. The company's 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). Round your percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Sales Net Net Operating Operating Income Assets 54,000,000 330,0005 800,000 54,100,000 54,200,000 54,300,000 54,400,000 54,500,000 5 800,000 5 800,000 5 800,000 5 800,000 5 800,000 2. What happens to the company's return on investment (ROI) as sales increase? O Increases
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