Required information [The following information applies to the questions displayed below] The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year: Sales Net operating income Average operating assets $ 840,000 $ 24,360 $ 100,000 The following questions are to be considered independently. 3. Assume that the manager of the club is able to reduce expenses by $3,360 without any change in sales or average operating
Required information [The following information applies to the questions displayed below] The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year: Sales Net operating income Average operating assets $ 840,000 $ 24,360 $ 100,000 The following questions are to be considered independently. 3. Assume that the manager of the club is able to reduce expenses by $3,360 without any change in sales or average operating
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpesh
![Required information
[The following information applies to the questions displayed below]
The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on
return on investment (ROI). The company's X Club reported the following results for the past year:
Sales
Net operating income
Average operating assets
$ 840,000
$ 24,360
$ 100,000
The following questions are to be considered independently.
3. Assume that the manager of the club is able to reduce expenses by $3,360 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%2F727048c2-4690-4d7b-9c2e-adb995274449%2F915263ba-2473-40fc-ba7c-5e8c56e1e5e7%2Fh89knp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on
return on investment (ROI). The company's X Club reported the following results for the past year:
Sales
Net operating income
Average operating assets
$ 840,000
$ 24,360
$ 100,000
The following questions are to be considered independently.
3. Assume that the manager of the club is able to reduce expenses by $3,360 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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