3 Exercise 12-5 Studying Effects of Changes in Profits and Assets on ROI (LO2 - CC4, 5) Pecs Alley 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 ROI. The Vancouver club reported the following results for the past year. 4 points Wlook Print References Sales Net operating income Average operating assets Required: $ 3,000,000 600,000 1,694,000 The following questions are to be considered independently. 1. Compute the club's ROI. (Do not round intermediate calculations. Enter your percentage answer rounded to 2 decimal place (i.e.. 0.1234 should be entered as 12.34).) ROI 3 2. Assume that the manager of the club is able to increase sales by $195,200, and, as a result, net operating income increases by $47,500. Further assume that this is possible without any increase in operating assets. What would be the club's ROI? (Do not round intermediate calculations. Enter your percentage answer rounded to 2 decimal place (i.e., 0.1234 should be entered as 12.34).) ROI ts eBook Print eferences 3. Assume that the manager of the club is able to reduce expenses by $42,800 without any change in sales or operating assets. What would be the club's ROI? (Do not round intermediate calculations. Enter your percentage answer rounded to 2 decimal place (i.e.. 0.1234 should be entered as 12.34).) ROI 4. Assume that the manager of the club is able to reduce operating assets by $390,500 without any change in sales or net operating income. What would be the club's ROI? (Do not round intermediate calculations. Enter your percentage answer rounded to 2 Subm Help Save & Exit 3 3. Assume that the manager of the club is able to reduce expenses by $42,800 without any change in sales or operating assets. Wh would be the club's ROI? (Do not round intermediate calculations. Enter your percentage answer rounded to 2 decimal place (.e.. 0.1234 should be entered as 12.34).) ROI % 4 points ellook Pint References 4. Assume that the manager of the club is able to reduce operating assets by $390,500 without any change in sales or net operating income. What would be the club's ROI? (Do not round intermediate calculations. Enter your percentage answer rounded to 2 decimal place (i.e., 0.1234 should be entered as 12.34).) ROL Assessment Tool Frame 5. This part of the question is not part of your Connect assignment