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Posters.com is a small Internet retailer of highquality posters. The company has $900,000 in operating assets and fixed expenses of $152,000 per year. With this
Posters.com is a small Internet retailer of highquality posters. The company has $900,000 in operating assets and fixed expenses of $152,000 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 Required 2 Complete the following table showing the relation between sales and return on investment (ROI). (Round ya answers to 2 decimal places.) ROI % Sales Average Net Operating Operating Income Assets $ 4,300,000 $ 235,000 $ 900,000 $ 4,400,000 $ 900,000 $ 4,500,000 $ 900,000 $ 4,600,000 $ 900,000 $ 4,700,000 $ 900,000 $ 4,800,000 $ 900,000 % % % % % Required Required 2 > Required 1 Required 2 What happens to the company's return on investment (ROI) as sales increase? Increases O Decreases Step by Step Solution
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