Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Posters.com is a small Internet retailer of high-quality posters. The company has $730,000 in operating assets and fixed expenses of $168,000 per year. With this
Posters.com is a small Internet retailer of high-quality posters. The company has $730,000 in operating assets and fixed expenses of $168,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,900,000 per year. The company's 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: Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) What happens to the company's return on investment (ROI) as sales increase? Increases Decreases
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started