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Posters.com is a small internet retailer of nign-quality posters. ine company nas $750,000 in operating assets and fixea expenses of $163,000 per year. With this
Posters.com is a small internet retailer of nign-quality posters. ine company nas $750,000 in operating assets and fixea expenses of $163,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,900,000 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.) ROI % $ % % Sales Net Operating Average Operating Income Assets 4,400,000 $ 321,000 $ 750,000 4,500,000 750,000 $ 750,000 4,600,000 750,000 4,700,000 $ $ 750,000 4,800,000 $ 750,000 4,900,000 % $ $ $ % % %
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