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 $4,800,000 peryear. The company's contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contributionmargin, and net operating income, of 10 cents.Required:1. Complete the following table showing the relation between sales and return on investment (ROI).2. What happens to the company's return on investment (ROI) as sales increase?Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentageanswers to 2 decimal places.)Sales$ 4,300,000$4,400,000$ 4,500,000$ 4,600,000$4,700,000$ 4,800,000Net OperatingIncome$ 268,000AverageOperatingAssets$$$$$$740,000740,000740,000740,000740,000740,000ROI %< Required 1Required 2 >

Return on Investment = Net operating income / Average operating assets Computation of the net…

Answered: Posters.com is a small Internet…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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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…
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Cost-Volume-Profit Analysis and Return on Investment Posters.com is a small Internet retailer of high-quality posters. The company has $1,000,000 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 $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 operating income, of 25 cents. Required: 1. Complete the following table showing the relation between sales and return on investment (ROT). 2. What happens to the company’s return on investment (ROD as sales increase? Explain.

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