Posters.com is a small Internet retailer of high-quality posters. The company has $870,000 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 $4,700,000 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).

Sales	Net Operating	Average Operating	ROI
	Income	Assets	%
$4,200,000	$250,000	$870,000		%
$4,300,000		$870,000		%
$4,400,000		$870,000		%
$4,500,000		$870,000		%
$4,600,000		$870,000		%
$4,700,000		$870,000		%

2. What happens to the companys return on investment (ROI) as sales increase?