Question: need help in both requirements. please add work/steps. thank you. Posters.com is a small Intemet retailer of high-quality posters. The company has $840,000 in operating

Posters.com is a small Intemet retailer of high-quality posters. The company has $840,000 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 $5,100,000 per year. The company's contribution margin ratio is 8%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 8 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 snowers to 2 decimal places) Sales ROI Net Operating Income Average Operating Assets 5 200,000 $ 840,000 46 $ 840,000 96 5 840.000 96 4.600.000 S 4.700,000 $ 4.800,000 $ 4.900.000 5 5.000.000 5 5.100.000 $ $ 840,000 56 3 % 340,000 340,000 5 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? Increases Decreases
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
