Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. posters.com is a small internet retailer of high-q

Posters.com is a small Internet retailer of high-quality posters. The company has $730,000 in operating...

90.2K

Verified Solution

Question

Accounting

image
Posters.com is a small Internet retailer of high-quality posters. The company has $730,000 in operating assets and fixed expenses of $153,000 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 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 (RO). 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 2 Required 1 Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Average Operating ROI Net Operating Sales % Assets Income $ 4,400,000 $ 730,000 $ 287,000 730,000 $ 4,500,000 % 730,000 $ 4,600,000 % $ 730,000 4,700,000 % $ 730,000 4,800,000 % 730,000 4,900,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students