Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $ 800,000 $ 20,000 $ 100,000 The following questions are to be considered independently. Exercise 10-11 Part 4 (Algo) 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) % 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 $ 800,000 $ 20,000 $ 100,000 The following questions are to be considered independently. Exercise 10-11 Part 4 (Algo) 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) %
Expert Answer:
Answer rating: 100% (QA)
c Replicating Arrow Securities with Portfolio and Pricing Continued Interpretation The two portfolios we constructed to replicate Arrow Securities 1 and 2 differ in their risk profiles Portfolio 1 rep... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
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...
-
5. The time in seconds that it takes a tech student to jog from the Student Union Building to the Student Life Center is distributed as a Normal random variable with mean ninety-five seconds and...
-
Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor -...
-
What is opportunity cost? explain a time in your life when you experienced opportunity cost. Why did you make the decision? What was another alternative that you could have made? Discuss how scarcity...
-
Alpine Company issues $2 million, 10-year, 7% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount. (a) Prepare the journal entry' to record...
-
The income statement approach used to estimate bad debts is based on Accounts Receivable on the balance sheet. Agree or disagree? Why?
-
Using the Internet, determine the goals of the National White Collar Crime Center?
-
(Comprehensive Bond Problem) In each of the following independent cases the company closes its books on December 31. 1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2010. The bonds pay...
-
Whizz Corp. has recently paid a dividend of $3 per share. You expect that the dividend will be $3 next year (t=1), increase 20% the following year (t=2), then increase 10% the following year (t=3),...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Exercise 4-21 (Algo) T-account analysis LO 4-6, 4-7 Answer the following questions that are related to the following Interest Payable T-account: Interest Payable Debit Credit February 1 balance...
-
The CFO of Blossom Corp estimates the number of units sold for May and June to be 4200 units and 7100 units respectively. These units will be sold at a price of $35 per unit. The CFO estimates that...
-
Calculate the cost of the inventory on January 31, under the LIFO method. Bramble Bookstore had 520 units on hand on January 1, costing $9 each. Purchases and sales during the month of January were...
-
If you were the editor of a newspaper would you have published pictures of "the falling man" picture the day after September 11 and that of the woman feeding a dog on a bridge with a dead body...
-
DB Company issued $ 2 0 0 , 0 0 0 , 0 0 0 of 8 % 2 0 - year bonds at 1 0 1 on 1 / 1 / 2 3 to yield 7 . 5 % . Interest is paid on June 3 0 and December 3 1 . Using effective - interest amortization,...
-
In Ontario, British Columbia, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, and the federal jurisdiction, labour relations boards have the authority to certify a union as the bargaining...
-
The Chicago Hope Hospital purchased an MRI machine for 12 million dollars, using a 6-year loan at 8% interest rate. ------------------------------------------------------------ Question: If the above...
-
Draw two scatterplots, one for which r = 1 and a second for which r = 21.
-
Below are listed various costs that are found in organizations. 1. The costs of turn signal switches used at a General Motors plant. These are one of the parts installed in the steering columns...
-
What is meant by the term time value of money?
-
In what fundamental ways does activity-based costing differ from traditional costing methods such as job-order costing as described in Chapter 3?
-
Calculate \(43+18 \times 15\).
-
Calculate \(60^{2} / 50\).
-
Correctly apply the rules for the order of operations to accurately compute the following: \(12 /(-4)+8 \times 9 / 12 \times 2^{3}-24 \times 25 / 10\).
Study smarter with the SolutionInn App