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    Cost-Volume-Profit Analysis And ROI

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    Posters.co, the company is a small internet retailer of high quality posters. The comapny 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 is 25% which means that an additional dollar of sales results in additional contribution margin, and net operating income of 25 cents.
    1. Complete the following table showing the relationship between sales and ROI.
    2. What happens to the company's ROI as sales increase? Explain

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