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 $830,000 in operating assets and fixed expenses of $164,000 per year. With this
Posters.com is a small Internet retailer of high-quality posters. The company has $830,000 in operating assets and fixed expenses of $164,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,000,000 per year. The company's contribution margin ratio is 11%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 11 cents Required: 1. Complete the following table showing the relation between sales and return on investment (ROI) 2. What happens to the company's return on investment (ROI) as sales increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Average Operating Net Operating Sales ROI Income Assets S 331,000 830,000 % 4,500,000 S % 830,000 4,600,000 S S % 830,000 4,700,000 $ S 830,000 4,800,000 S % 830,000 4,900,000 S S 830,000 % 5,000,000 Required Required 2
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