! 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 Average operating assets $ 880,000 $ 29,040 $ 100,000 The following questions are to be considered independently. 3. Assume the club manager can reduce expenses by $3,520 without any change in sales or 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) %

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...
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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
Average operating assets
$ 880,000
$ 29,040
$ 100,000
The following questions are to be considered
independently.
3. Assume the club manager can reduce expenses by $3,520 without
any change in sales or 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)
%
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 Average operating assets $ 880,000 $ 29,040 $ 100,000 The following questions are to be considered independently. 3. Assume the club manager can reduce expenses by $3,520 without any change in sales or 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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