Fitness Fanatics is a regional chain of health clubs. Themanagers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI).The company's Springfield Club reported the following results forthe past year:
Sales $ 710,000 Net operatingincome $ 11,360 Average operatingassets $ 100,000
2. Assume that the manager of the club is able to increase sales by$71,000 and that, as a result, net operating income increases by$5,041. Further assume that this is possible without any increasein operating assets. What would be the clubâs return on investment(ROI)? (Round your Turnover answer to 2 decimal places.Round your Margin and ROI percentage answers to 2 decimal places(i.e., 0.1234 should be entered as 12.34).)
Fitness Fanatics is a regional chain of health clubs. Themanagers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI).The company's Springfield Club reported the following results forthe past year: |
| Sales | $ | 710,000 |
| Net operatingincome | $ | 11,360 |
| Average operatingassets | $ | 100,000 |
| 2. | Assume that the manager of the club is able to increase sales by$71,000 and that, as a result, net operating income increases by$5,041. Further assume that this is possible without any increasein operating assets. What would be the clubâs return on investment(ROI)? (Round your Turnover answer to 2 decimal places.Round your Margin and ROI percentage answers to 2 decimal places(i.e., 0.1234 should be entered as 12.34).) |
Related questions
Fitness Fanatics is a regional chain of health clubs. Themanagers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI).The company's Springfield Club reported the following results forthe past year: |
| Sales | $ | 710,000 | |||||||||||||||
| Net operatingincome | $ | 11,360 | |||||||||||||||
| Average operatingassets | $ | 100,000 | |||||||||||||||
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| The following informationapplies to the questions displayed below.] |
Fitness Fanatics is a regional chain of health clubs. Themanagers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI).The company's Springfield Club reported the following results forthe past year: |
| Sales | $ | 740,000 |
| Net operatingincome | $ | 14,060 |
| Average operatingassets | $ | 100,000 |
| 4. | Assume that the manager of the club is able to reduce operatingassets by $20,000 without any change in sales or net operatingincome. What would be the clubâs Margin, Turnover, and return oninvestment (ROI)? (Round your answers to 2 decimalplaces.) Margin: Turnover: RoI: |
| [The following informationapplies to the questions displayed below.] |
Fitness Fanatics is a regional chain of health clubs. Themanagers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI).The company's Springfield Club reported the following results forthe past year: |
| Sales | $ | 740,000 |
| Net operatingincome | $ | 14,060 |
| Average operatingassets | $ | 100,000 |
| 2. | Assume that the manager of the club is able to increase sales by$74,000 and that, as a result, net operating income increases by$5,476. Further assume that this is possible without any increasein operating assets. What would be the clubâs Margin, Turnover, andreturn on investment (ROI)? (Round your answers to 2decimal places.) Margin Turnover ROI |
