Posters.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $156,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,200,000 per year. The companys contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents.

Required:

1. Complete the following table showing the relationship between sales and return on investment (ROI).

Sales Net Opeing Average ROI Income Assets 4,700,000 4,800,000 4,900,000 5,000,000 5,100,000 5,200,000 $ 314,000 770,000 $ 770,000 $ 770,000 $ 770,000 $ 770,000 $ 770,000