Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of $165,000 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 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? 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.) Average Operating Sales Net Operating ROI Income Assets % 363,000 S 850,000 4,400,000 4,500,000 850,000 % 4,600,000 850,000 % 4,700,000 850,000 % 4,800,000 850,000 4,900,000 850.000 %

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of
$165,000 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 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?
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.)
Net Operating
Average
Operating
Sales
ROI
Income
Assets
4,400,000 S
363,000 S
850,000
%
4,500,000
850,000
%
4.600,000
850,000
%
4,700,000
850,000
%
4,800,000
850,000
4,900,000
850.000
%
Required 2 >
Transcribed Image Text:Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of $165,000 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 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? 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.) Net Operating Average Operating Sales ROI Income Assets 4,400,000 S 363,000 S 850,000 % 4,500,000 850,000 % 4.600,000 850,000 % 4,700,000 850,000 % 4,800,000 850,000 4,900,000 850.000 % Required 2 >
Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of
$165,000 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 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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
What happens to the company's return on investment (ROI) as sales increase?
OIncreases
Decreases
< Required 1
Reuited D
Transcribed Image Text:Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of $165,000 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 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What happens to the company's return on investment (ROI) as sales increase? OIncreases Decreases < Required 1 Reuited D
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