Question
Posters.com is a small retailer of high quality postersThe company has $790,000 in operating assets and fixed expenses $167.000 per year. With this level of
Posters.com is a small retailer of high quality postersThe company has $790,000 in operating assets and fixed expenses $167.000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to \$5,300,000 per year. The company's contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution marginand net operating income, of 10 cents. Required: Complete the following table showing the relation between sales and return on investment (RON 2. What happens to the company's return on investment (ROI) as sales increase?
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