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Classic Club is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based
Classic Club 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 Montreal club reported the following results for the past year:
Required:
The following questions are to be considered independently.
Compute the club's ROI. Do not round intermediate calculations. Enter your percentage answer rounded to decimal place ie
should be entered as
ROI
Assume that the manager of the club is able to increase sales by $ and, as a result, net operating income increases by
$ 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 decimal place ie should be entered as
Assume that the manager of the club is able to reduce expenses by $ 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 decimal place ie
should be entered as
ROI
Assume that the manager of the club is able to reduce operating assets by $ 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
decimal place ie should be entered as
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