Dog Posters.com is an Internet retailer of high-quality posters. The company has $790,000 in operating assets and fixed expenses of$159,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,000,000 peryear. The company's contribution margin ratio is 12%, which means an additional dollar of sales results in additional contributionmargin, and net operating income, of 12 cents.Required:1. Complete the following table showing the relation between sales and return on investment (ROI).2. What happens to the company's return on investment (ROI) as sales increase?Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete the following table showing the relation between sales and return on investment (ROI).Note: Round your percentage answers to 2 decimal places.SalesNet OperatingIncome$ 4,500,000 $ 381,000$4,600,000$4,700,000$ 4,800,000$ 4,900,000$5,000,000AverageOperatingAssets$ 790,000$790,000790,000790,000790,000790,000$$$$ROI %

ROI :— It is calculated by dividing net operating income by average operating assets. Net operating…

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

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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 $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 $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…
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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 $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 $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
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Olongapo Sports Corporation distributes two premium golf balls—the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: picture1 Fixed expenses total $183,750 per month. Required:1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.2. Compute the break-even point for the company based on the current sales mix.3. If sales increase by $100,000 a month, by how much would you expect net operating incometo increase? What are your assumptions?
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…
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