Question: Exercise 1 0 - 1 0 ( Algo ) Cost - Volume - Profit Analysis and Return on Investment ( ROI ) [ LO 1

Exercise 10-10(Algo) Cost-Volume-Profit Analysis and Return on Investment (ROI)[LO10-1]
Posters.com is an Internet retailer of high-quality posters. The company has $810,000 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 $5,400,000 per year. The company's contribution margin ratio is 9%, which means an additional dollar of sales results in additional contribution margin, and net operating income, of 9 cents.
Required:
Complete the following table showing the relation between sales and return on investment (ROI).
What happens to the company's return on investment ( ROI ) as sales increase?
Complete this question by entering your answers in the tabs below.
Complete the following table showing the relation between sales and return on investment (ROI).
Note: Round your percentage answers to 2 decimal places.
\table[[Sales,Net Operating Income,Average Operating Assets,ROI,],[$ 4,900,000,$ 284,000,$ 810,000,,%],[$ 5,000,000,,$ 810,000,,%],[$ 5,100,000,,$ 810,000,,%],[$ 5,200,000,,$ 810,000,,%],[$ 5,300,000,,$ 810,000,,%],[$ 5,400,000,,$ 810,000,,%]]
Exercise 1 0 - 1 0 ( Algo ) Cost - Volume -

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