The Anderson Corporation (an all-equity-financed firm) has a sales level of $280, 000 with a 10 percent profit margin before interest and taxes. To generate this sales volume, the firm maintains a fixed-asset investment of $100, 000. Currently, the firm maintains $50, 000 in current assets.

Calculate the rate of return on pre-tax assets at different asset levels starting at $ 10,000 and increasing in increments from $ 15,000 to $ 100,000. What implicit assumptions are being made about sales? Evaluate the importance of this assumption together with the policy to choose the level of current assets that will maximize the return on total assets as calculated.