Posters.com is a small Internet retailer of high-quality posters. The company has $730,000 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 $5,200,000 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 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).) Average Net Operating Operating Sales ROI Income Assets $ 4,700,000316,000$ 730,000 $730,000 $ 730,000 $ 730,000 $ 730,000 $730,000 $ 4,800,000 $ 4,900,000 5,000,000 5,100,000 S 5,200,000 2. What happens to the company's return on investment (ROI) as sales increase? O Increases Decreases