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Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of $166,000 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 12%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 12 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? Answer is not complete. 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). Note: Round your percentage answers to 2 decimal places. Sales $4,200,000 Net Operating Income $ 338,000 Average Operating Assets ROI % $ 790,000 $4,300,000 $ 790,000 $4,400,000 $ 790,000 $4,500,000 $ 790,000 $ 4,600,000 $ 790,000 $ 4,700,000 $ 790,000

Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of $166,000 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 12%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 12 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? Answer is not complete. 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). Note: Round your percentage answers to 2 decimal places. Sales $4,200,000 Net Operating Income $ 338,000 Average Operating Assets ROI % $ 790,000 $4,300,000 $ 790,000 $4,400,000 $ 790,000 $4,500,000 $ 790,000 $ 4,600,000 $ 790,000 $ 4,700,000 $ 790,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of $166,000 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 12%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 12 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? Answer is not complete. 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). Note: Round your percentage answers to 2 decimal places. Sales $4,200,000 Net Operating Income $ 338,000 Average Operating Assets ROI % $ 790,000 $4,300,000 $ 790,000 $4,400,000 $ 790,000 $4,500,000 $ 790,000 $ 4,600,000 $ 790,000 $ 4,700,000 $ 790,000
Transcribed Image Text:Posters.com is a small Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of $166,000 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 12%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 12 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? Answer is not complete. 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). Note: Round your percentage answers to 2 decimal places. Sales $4,200,000 Net Operating Income $ 338,000 Average Operating Assets ROI % $ 790,000 $4,300,000 $ 790,000 $4,400,000 $ 790,000 $4,500,000 $ 790,000 $ 4,600,000 $ 790,000 $ 4,700,000 $ 790,000
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