Check my work 1 Provide the missing data in the following table for a distributor of martial arts products: (Round "Turnover" and "ROI" answers to 1 decimal place.) Division points Alpha Bravo Charlie $ 302,500 Sales ook $ 42, $ Net operating income 68,640 Hint 425,000 Average operating assets 13 % Margin Print 5.0 Turnover References Return on investment 35.0% 26.0 % |(ROI) 10 Check my work 2 Required information [The following information applies to the questions displayed below.] Part 1 of 4 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: 10 points Sales Net operating income Average operating assets 770,000 $ 16,940 $ 100,000 ok Print References The following questions are to be considered independently. Required: 1. Compute the Springfield club's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) Check my work 33 Required information [The following information applies to the questions displayed below.] Part 2 of 4 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: 10 points Sales Net operating income Average operating assets $770,000 $ 16,940 $ 100,000 ok Print References The following questions are to be considered independently. 2. Assume that the manager of the club is able to increase sales by $77,000 and that, as a result, net operating income increases by $5,929. Further assume that this is possible without any increase in average operating assets. 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) Check my work 4 Required information [The following information applies to the questions displayed below.] Part 3 of 4 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: 10 points Sales Net operating income Average operating assets $770,000 $ 16,940 $ 100,000 ook Print References The following questions are to be considered independently 3. Assume that the manager of the club is able to reduce expenses by $3,080 without any change in sales or average operating assets. 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) Check my work Required information [The following information applies to the questions displayed below.] Part 4 of 4 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: 10 points Sales Net operating income Average operating assets $770,000 $ 16,940 $ 100,000 ok Print References The following questions are to be considered independently. 4. Assume that the manager of the club is able to reduce average operating assets by $30,000 without any change operating income. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) sales or net Return on investment (ROI) LO Check my work 6 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $ 5,100,000 $ 1,020,000 214,200 Division B $9,100,000 $ 2,275,000 Division C $ 8,200,000 $1,640,000 $ Sales Average operating assets Net operating income Minimum required rate of return 10 points $ 746,200 118,900 $ 17.00% 32.80% 14.00% eBook Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 19% rate of return a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Print References Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin Turnover ROI Division A Division B % Division C % % Check my work 7 Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) points Company A ook $ 4,452,000 $ 1,878,000 Sales Print $ $ Net operating income 445,200 356,820 References $ 2,120,000 $ 3,040,000 Average operating assets Margin 7 % 2.10 Turnover 11.40 % Return on investment (ROI) 96 10