Required information[The following information applies to the questionsdisplayed below.]Fitness Fanatics is a regional chain of health clubs thatevaluates its club managers based on return oninvestment (ROI). The company's Springfield Clubreported the following results for the past year:SalesNet operating incomeAverage operating assets$ 880,000$ 29,040$ 100,000The following questions are to be consideredindependently.4. Assume the club manager can reduce average operating assets by$20,000 without any change in sales or net operating income. Whatwould be the club's return on investment (ROI)?Note: Do not round intermediate calculations. Round your answer to2 decimal places.Return on investment (ROI)%

Margin= Operating income / Sales x 100= 29,040 / 880,000 x 100= 3.3% Turnover= 880,000 / (100,000 -…

Answered: Required information [The following…

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...

See similar textbooks

Similar questions

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) %
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. 2. Assume the club manager can increase sales by $75,000 and net operating income by $5,625. Further assume this is possible without any increase in 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)
Subject: acounting
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 The following questions are to be considered independently. $ 920,000 $ 34,040 $ 100,000 3. Assume the club manager can reduce expenses by $3,680 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. Retum 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 $750,000 $ 15,000 $ 100,000 The following questions are to be considered independently. 3. Assume the club manager can reduce expenses by $3,000 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) %
B
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 Average operating assets The following questions are to be considered independently. $ 880,000 $ 29,040 $ 100,000 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)
Gadubhai
1
How can get this problem resolve? 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 $ 810,000 Net operating income $ 21,060 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 $40,000 without any change in sales or net operating income. What would be the club’s return on investment
Effects of Changes in Profits and Assets on Return on Investment (ROI) 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: Required: The following questions are to be considered independently. Carry out all computations to two decimal places. 1. Compute the Springfield club’s return on investment (ROI). 2. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further assume that this is possible without any increase in average operating assets. What would be the club’s return on investment (ROI)? 3. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or average operating assets. What would be the club’s return on investment (ROI)? 4.…
Please do not give solution in image format thanku

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Essentials of Business Analytics (MindTap Course …

Statistics

ISBN:

9781305627734

Author:

Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Essentials of Business Analytics (MindTap Course …

Statistics

ISBN:

9781305627734

Author:

Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS