! Required information [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income $ 940,000 $36,660 $ 100,000 Average operating assets The following questions are to be considered independently. 4. Assume that the manager of the club is able to reduce average operating assets by $20,000 without any change in sales or net operating income. 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) %
! Required information [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales Net operating income $ 940,000 $36,660 $ 100,000 Average operating assets The following questions are to be considered independently. 4. Assume that the manager of the club is able to reduce average operating assets by $20,000 without any change in sales or net operating income. 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) %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as
needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following
results for the past year:
Sales
Net operating income
$ 940,000
$36,660
Average operating assets
$ 100,000
The following questions are to be considered independently.
4. Assume that the manager of the club is able to reduce average operating assets by $20,000 without any change in sales or net
operating income. 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%2Fdead88a2-0ef7-48c9-8d78-426ba1780967%2Fa5bcf0a5-3d62-4bb2-ba53-05dd4e57af1a%2Fsmocegs_processed.png&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. The managers of the clubs, who have authority to make investments as
needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following
results for the past year:
Sales
Net operating income
$ 940,000
$36,660
Average operating assets
$ 100,000
The following questions are to be considered independently.
4. Assume that the manager of the club is able to reduce average operating assets by $20,000 without any change in sales or net
operating income. 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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