Required information [The following information applies to the questions displayed below] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income $ 870,000 $ 27,840 $100,000 Average operating assets The following questions are to be considered independently. 3. Assume that the manager of the club is able to reduce expenses by $3,480 without any change in sales or average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI)
Required information [The following information applies to the questions displayed below] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income $ 870,000 $ 27,840 $100,000 Average operating assets The following questions are to be considered independently. 3. Assume that the manager of the club is able to reduce expenses by $3,480 without any change in sales or average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI)
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. The managers of the clubs, who have authority to make investments as
needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following
results for the past year:
Sales
Net operating income
$ 870,000
$ 27,840
$100,000
Average operating assets
The following questions are to be considered independently.
3. Assume that the manager of the club is able to reduce expenses by $3,480 without any change in sales or average operating
assets. What would be the club's return on investment (ROI)? (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%2F812d8c6b-b5f7-4642-80d2-ccd36dbdc22b%2Fbd257f3b-3cfc-4d39-943d-6df155657dd0%2Fb0o9x1m_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. The managers of the clubs, who have authority to make investments as
needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following
results for the past year:
Sales
Net operating income
$ 870,000
$ 27,840
$100,000
Average operating assets
The following questions are to be considered independently.
3. Assume that the manager of the club is able to reduce expenses by $3,480 without any change in sales or average operating
assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2
decimal places.)
Return on investment (ROI)
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