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 $ 840,000
Net operating income $ 24,360
Average operatingassets $ 100,000
1. Compute the Springfieldclubâs return on investment (ROI).
Margin: __?
Turnover __?
ROI ___?
2.
Assume that the manager of the club is able to increase sales by$84,000 and that, as a result, net operating income increases by$7,056. Further assume that this is possible without any increasein operating assets. What would be the clubâs return on investment(ROI)? (Round your answers to 2 decimal places.)
Margin ____??
Turnover ____??
ROI ____??
3. Assume that the manager of the club is able to reduceexpenses by $3,360 without any change in sales or operating assets.What would be the clubâs return on investment (ROI)? (
Margin?
Turnover??
ROI??
4.
Assume that the manager of the club is able to increase sales by$84,000 and that, as a result, net operating income increases by$7,056. Further assume that this is possible without any increasein operating assets. What would be the clubâs return on investment(ROI)? (Round your answers to 2 decimal places.)
Margin?
Turnover?
ROI??
5.) Assume that the manager of the club is able to reduceoperating assets by $20,000 without any change in sales or netoperating income. What would be the clubâs return on investment(ROI)? (Round your answers to 2 decimal places.)
Margin?
Turnover?
ROI?
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 $ 840,000
Net operating income $ 24,360
Average operatingassets $ 100,000
1. Compute the Springfieldclubâs return on investment (ROI).
Margin: __?
Turnover __?
ROI ___?
2.
Assume that the manager of the club is able to increase sales by$84,000 and that, as a result, net operating income increases by$7,056. Further assume that this is possible without any increasein operating assets. What would be the clubâs return on investment(ROI)? (Round your answers to 2 decimal places.)
Margin ____??
Turnover ____??
ROI ____??
3. Assume that the manager of the club is able to reduceexpenses by $3,360 without any change in sales or operating assets.What would be the clubâs return on investment (ROI)? (
Margin?
Turnover??
ROI??
4.
Assume that the manager of the club is able to increase sales by$84,000 and that, as a result, net operating income increases by$7,056. Further assume that this is possible without any increasein operating assets. What would be the clubâs return on investment(ROI)? (Round your answers to 2 decimal places.)
Margin?
Turnover?
ROI??
5.) Assume that the manager of the club is able to reduceoperating assets by $20,000 without any change in sales or netoperating income. What would be the clubâs return on investment(ROI)? (Round your answers to 2 decimal places.)
Margin?
Turnover?
ROI?
Related questions
| [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 |
| 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: |
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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