Fitness Fanatics is a regional chain of health clubs that evaluates The company's Springfield Club reported the following results for $ 810,000 $ 21,060 $ 100,000 Sales Net operating income Average operating assets The following questions are to be considered independently.
Fitness Fanatics is a regional chain of health clubs that evaluates The company's Springfield Club reported the following results for $ 810,000 $ 21,060 $ 100,000 Sales Net operating income Average operating assets The following questions are to be considered independently.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information.
[The following information applies to the questions displayed below.]
Fitness Fanatics is a regional chain of health clubs that evaluates its club managers based on return on investment (ROI).
The company's Springfield Club reported the following results for the past year:
Sales
Net operating income i
Average operating assets.
The following questions are to be considered independently.
$ 810,000
$ 21,060
$ 100,000
2. Assume the club manager can increase sales by $81,000 and net operating income by $6,561. Further assume this is possible
without any increase in average operating assets. What would be the club's return on investment (ROI)?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Return on investment (ROI)
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f40305d-8ec6-49bd-9ef7-5082a6200818%2F6b544cdb-8781-4d0b-8b25-b3f4df4605f6%2Fbnmzvjm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information.
[The following information applies to the questions displayed below.]
Fitness Fanatics is a regional chain of health clubs that evaluates its club managers based on return on investment (ROI).
The company's Springfield Club reported the following results for the past year:
Sales
Net operating income i
Average operating assets.
The following questions are to be considered independently.
$ 810,000
$ 21,060
$ 100,000
2. Assume the club manager can increase sales by $81,000 and net operating income by $6,561. Further assume this is possible
without any increase in average operating assets. What would be the club's return on investment (ROI)?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Return on investment (ROI)
%
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