Imagescom is a small internet retailer of high-quality

Reference no: EM13584556

Images.com is a small Internet retailer of high-quality posters. The company has $820,000 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 $5.4 million per year. The company%u2019s contribution margin ratio is 9%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 9 cents.

Required:
1.Complete the following table showing the relationship between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places. Omit the "tiny_mce_markerquot; and "%" signs in your response.)What happens to the company's return on investment (ROI) as sales increase?

Reference no: EM13584556

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