posters. The company has $710,000 in operating assets and fixed
expenses of $163,000 per year. With this level of operating assets
and fixed expenses, the company can support sales of up to
$4,700,000 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?
- Posters Com Is A Small Internet Retailer Of High Quality Posters The Company Has 710 000 In Operating Assets And Fixed 1 (59.6 KiB) Viewed 74 times