Posters.com is an Internet retailer of high-quality posters. The company has $710,000 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 $4,800,000 per year. The company's contribution margin ratio is 10%, which means an additional dollar of sales results in additional contribution margin, and net operating income, of 10 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). Note: Round your percentage answers to 2 decimal places. Sales Net Operating Income Average Operating Assets ROI % $ 4,300,000 $ 265,000 $ 710,000 $ 4,400,000 $ 710,000 $ 4,500,000 $ 710,000 $ 4,600,000 $ 710,000 $ 4,700,000 $ 710,000 $ 4,800,000 $ 710,000 Required 1 Required 2 >

Posters.com is an Internet retailer of high-quality posters. The company has $710,000 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 $4,800,000 per year. The company's contribution margin ratio is 10%, which means an additional dollar of sales results in additional contribution margin, and net operating income, of 10 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). Note: Round your percentage answers to 2 decimal places. Sales Net Operating Income Average Operating Assets ROI % $ 4,300,000 $ 265,000 $ 710,000 $ 4,400,000 $ 710,000 $ 4,500,000 $ 710,000 $ 4,600,000 $ 710,000 $ 4,700,000 $ 710,000 $ 4,800,000 $ 710,000 Required 1 Required 2 >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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