Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

image text in transcribed
Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Sales Net Operating Average ROI Operating Income Assets % $4,800,000 $ 313,000 $ 790,000 % $4,900,000 $ 790,000 % $5,000,000 $ 790,000 % $5,100,000 $ 790,000 % $5,200,000 790,000 % $5,300,000 790,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions

Question

What is the effect of word war second?

Answered: 1 week ago