Posters.com is a small Internet retailer of high-quality posters. The company has $710,000 in operating assets and fixed expenses of $154,000 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 11%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 11 cents.

Sales	Net Operating	Average Operating	ROI
	Income	Assets	%
$4,800,000	$374,000	$710,000		%
$4,900,000		$710,000		%
$5,000,000		$710,000		%
$5,100,000		$710,000		%
$5,200,000		$710,000		%
$5,300,000		$710,000		%

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?