2. 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 $2,100,000 $70,000 $420,000 I Required: The following questions are to be considered independently. Carry out all computations to two decimal places a) Compute the Springfield club's return on investment (ROI). b) Compute the Springfield club's residual income (RI) assuming 14% as minimum required rate of return. c) Assume that the manager of the club is able to reduce expenses by $20,000 without any change in sales or operating assets. What would be the club's return on investment (ROI)