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Posters.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $167,000 per year. With this
Posters.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $167,000 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 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) (rounded). (Round your percentage answers to 2 decimal places.) Sales Net Operating ROI Average Operating Assets Income % $ $ 273,000 $ 770,000 % $ 770,000 % $ 770,000 % 4,400,000 $ 4,500,000 $ 4,600,000 $ 4,700,000 $ 4,800,000 $ 4,900,000 $ 770,000 % $ 770,000 % $ 770,000 %
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