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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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