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 $4,800,000 peryear. The company's contribution margin ratio is 10%, which means an additional dollar of sales results in additional contributionmargin, and net operating income, of 10 cents.Required:1. Complete the following table showing the relation between sales and return on investment (ROI).2. What happens to the company's return on investment (ROI) as sales increase?Complete this question by entering your answers in the tabs below.Required 1Required 2Complete the following table showing the relation between sales and return on investment (ROI).Note: Round your percentage answers to 2 decimal places.SalesNet OperatingIncomeAverageOperatingAssetsROI %$ 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$710,000Required 1Required 2 >

Step 1: Compute for the Net Operating Income Net operating income (NOI) is a commonly used figure…

Answered: Posters.com is an Internet retailer of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Posters.com is a small Internet retailer of high-quality posters. The company has $740,000 in operating assets and fixed expenses of $162,000 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 that 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). (Round your percentage answers to 2 decimal places.) Sales $ 4,300,000 $4,400,000 $ 4,500,000 $ 4,600,000 $4,700,000 $ 4,800,000 Net Operating Income $ 268,000 Average Operating…
Posters.com is a small Internet retailer of high-quality posters. The company has $770,000 in operating assets and fixed expenses of $157,000 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 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 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.) Sales Net Operating Income Average Operating Assets $ 4,400,000 $ 327,000 $ $ 4,500,000 $ $ 4,600,000 $ 770,000 $ 4,700,000 $…
Posters.com is a small Internet retailer of high-quality posters. The company has $800,000 in operating assets and fixed expenses of $168,000 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 9%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 9 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 Sales Income Average Operating Assets ROI % $ 4,200,000 $ 210,000 $ 800,000 $ 4,300,000 $ 800,000 $ 4,400,000 $…
Posters.com is a small Internet retailer of high-quality posters. The company has $890,000 in operating assets and fixed expenses of $169,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,000,000 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 ROI Sales Income Assets $ 4,500,000 S $ 4,600,000 371,000 $ 890,000 890,000 $ 4,700,000 $ 890,000…
Posters.com is a small Internet retailer of high-quality posters. The company has $890,000 in operating assets and fixed expenses of $170,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,600,000 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 $810,000 in operating assets and fixed expenses of $162,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,600,000 per year. The company’s contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents. Required: Complete the following table showing the relation between sales and return on investment (ROI). What happens to the company’s return on investment (ROI) as sales increase? req 1 Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Sales Net Operating Income Average Operating Assets ROI $4,100,000 $248,000 $810,000 % $4,200,000 $810,000 % $4,300,000 $810,000 % $4,400,000…
Posters.com is a small Internet retailer of high-quality posters. The company has $890,000 in operating assets and fixed expenses of $150,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,300,000 per year. The company’s contribution margin ratio is 10%, which means that 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 entrying your answers in the tab attached
Meman
Vinubhai
Posters.com is a small Internet retailer of high-quality posters. The company has $1,000,000 in operatingassets and fixed expenses of $150,000 per year. With this level of operating assets and fixed expenses, thecompany can support sales of up to $3,000,000 per year. The company’s contribution margin ratio is 25%,which means that an additional dollar of sales results in additional contribution margin, and net operatingincome, of 25 cents.Required:1. Complete the following table showing the relation between sales and return on investment (ROI).Net Operating AverageSales Income Operating Assets ROI$2,500,000 $475,000 $1,000,000 ?$2,600,000 $ ? $1,000,000 ?$2,700,000 $ ? $1,000,000 ?$2,800,000 $ ? $1,000,000 ?$2,900,000 $ ? $1,000,000 ?$3,000,000 $ ? $1,000,000 ?2. What happens to the company’s return on investment (ROI) as sales increase? Explain.
10hw-1
Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and annual fixed costs total $30,000 per year. The company would like to realize operating income next year of $60,000. What level of sales in dollars must the company achieve to reach its target profit?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS