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Exercise 11-9 Return on Investment (ROI) and Residual Income Relations (LO11-1, LO11-2] A family friend has asked your help in analyzing the operations of three
Exercise 11-9 Return on Investment (ROI) and Residual Income Relations (LO11-1, LO11-2] A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Company $ 440,000 $ $ 510,000 740,000 48,000 $ $ 140,000 159,000 20% 16 % Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income 16 % 14 % $ 58,000 $ 5,000 Required information Exercise 11-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) (LO11-1) [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 results for the past year: Sales Net operating income Average operating assets $ 730,000 $ 13, 140 $ 100,000 The following questions are to be considered independently. Exercise 11-11 Part 1 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) %
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