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 a small Internet retailer of high-quality posters. The company has $880,000 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 $5,200,000 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:
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.
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.)
\table[[Sales,\table[[Net Operating],[Income]],\table[[Average],[Operating],[Assets]],ROI,],[$4,700,000,$255,000,$,880,000,28.97,%
 Exercise 10-10(Algo) Cost-Volume-Profit Analysis and Return on Investment (ROI)[LO10-1] Posters.com is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!