Fitness Fanatics is a regional chain of health clubs that evaluates its

club managers based on return on investment $($ROI$).$ The company's

Springfield Club reported the following results for the past year:

The following questions are to be considered independently.

$1.$ Assume the club manager can reduce expenses by $$2,920$ without any change in sales or average operating assets. What would be the club's return on investment $($ROI$)?$