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 $ 710,000 $ 11,360 $ 100,000 The following questions are to be considered independently. 4. Assume the club manager can reduce average operating assets by $50,000 without any change in sales or net operating income. 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) %
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 $ 710,000 $ 11,360 $ 100,000 The following questions are to be considered independently. 4. Assume the club manager can reduce average operating assets by $50,000 without any change in sales or net operating income. 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) %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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
$ 710,000
$ 11,360
$ 100,000
The following questions are to be considered independently.
4. Assume the club manager can reduce average operating assets by $50,000 without any change in sales or net operating income.
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%2Fc407348e-74f9-451b-8a05-2e09042d8432%2F4040dec9-7836-4d32-9092-c77a4d85321b%2Fsfxu8ha_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
Average operating assets
$ 710,000
$ 11,360
$ 100,000
The following questions are to be considered independently.
4. Assume the club manager can reduce average operating assets by $50,000 without any change in sales or net operating income.
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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