Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compute the Springfield clubs return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Assume that the manager of

image text in transcribed

Compute the Springfield clubs return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Assume that the manager of the club is able to increase sales by $89,000 and that, as a result, net operating income increases by $7,921. Further assume that this is possible without any increase in average operating assets. What would be the clubs return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Assume that the manager of the club is able to reduce expenses by $3,560 without any change in sales or average operating assets. What would be the clubs return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Assume that the manager of the club is able to reduce average operating assets by $50,000 without any change in sales or net operating income. What would be the clubs return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Required information The following information applies to the questions displayed below. 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 ar. Sales Net operating income Average operating assets 890,000 $ 30,260 100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Accounting And Auditing Forms

Authors: Wendell

1st Edition

0882621769, 978-0882621760

More Books

Students also viewed these Accounting questions

Question

How are opening statements different from closing arguments?

Answered: 1 week ago