Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of $165,000 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 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 hannens to the compa return on investment (ROILas sales increase?

Posters.com is a small Internet retailer of high-quality posters. The company has $850,000 in operating assets and fixed expenses of $165,000 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 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 hannens to the compa return on investment (ROILas sales increase?

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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