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 $ 750,000 $ 15,000 $ 100,000 The following questions are to be considered independently. Assume the club manager can increase sales by $75,000 and net operating income by $5,625. Further assume this is possible ithout any increase in average operating assets. What would be the club's return on investment (ROI)? ote: Do not round intermediate calculations. Round your answer to 2 decimal places.

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 $ 750,000 $ 15,000 $ 100,000 The following questions are to be considered independently. Assume the club manager can increase sales by $75,000 and net operating income by $5,625. Further assume this is possible ithout any increase in average operating assets. What would be the club's return on investment (ROI)? ote: Do not round intermediate calculations. Round your answer to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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: The following questions are to be considered independently. 1. Assume the club manager can reduce expenses by $2,920 without any change in sales or average operating assets. What would be the club's 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 $ 910,000 $ 32,760 $ 100,000 The following questions are to be considered independently. Required: I 1. Compute the Springfield 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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