Answer Happy

Posters.com is a small Internet retailer of high-quality
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?
Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Net Operating ROI Sales Income % 299,000 $ 4,200,000 $ $ 4,300,000 $ 4,400,000 $ 4,500,000 $ 4,600,000 $ 4,700,000 Average Operating Assets $ 710,000 $ 710,000 $ 710,000 710,000 710,000 $ 710,000