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EXERCISE 9-10 Cost-Volume-Profit Analysis and Return on Investment (ROI)[LO9-I] Posters.com is a...

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Accounting

EXERCISE 9-10 Cost-Volume-Profit Analysis and Return on Investment (ROI)[LO9-I]
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:
Complete the following table showing the relation between sales and return on investment (ROI).
\table[[Sales,\table[[Net Operating],[Income]],\table[[Average],[Operating Assets]],ROI],[$2,500,000,$475,000,$1,000,000,?
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