Exercises for ROI Snap Fitness is a regional chain of health clubs. The managers of the clubs have the authority to make investments, based on return on investment. The local facility reported the following results for the past year. Sales $1,400,000 Net operating income $70,000 Average operating assets $350,000 1. Answer the following cases, assume each is independent. a. Compute the return on investment b. Assume that the manager is able to increase sales by $70,000 and increase net operating income by $18,200. There is no increase in average operating assets. What is the new ROI? c. Assume the manager is able to reduce expenses by $14,000 without any change in sales or average operating assets. What is the new ROI? d. Assume the manager is able to reduce the average operating assets by $70,000 with no change in sales or net operating income. What is the new ROI