Posters.com is a small Internet retailer of high-quality posters. The company has $780,000 in operating assets and fixed expenses of $158,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,300,000 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).

Sales	Net Operating	Average Operating	ROI
	Income	Assets		%
$4,800,000	$418,000	$780,000
$4,900,000		$780,000
$5,000,000		$780,000
$5,100,000		$780,000
$5,200,000		$780,000
$5,300,000		$780,000