Posters.com is a small Internet retailer of high-quality posters. The company has $710,000 in operating assets and fixed expenses of $170,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,600,000 per year. The companys 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. 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	%
$4,100,000	$199,000	$710,000	28.00	%
$4,200,000		$710,000		%
$4,300,000		$710,000		%
$4,400,000		$710,000		%
$4,500,000		$710,000		%
$4,600,000		$710,000		%