Help solve please

ERCISE 10-7 Effects of Changes in Profits and Assets on Return on Investment (ROI) (LOI) The Abs Shoppe is a regional chain of health clubs. The managers of the clubs, who have authority to make ments as needed, are evaluated based largely on return on investment (ROI). The Abs Shoppe re- ed the following results for the past year: port $16,000 $100,000 Average operating assets. Required: The following questions are to be considered independently. Carry out all computations to two decimal places. 1. Compute the club's return on investment (ROI) 2. Assume that the manager of the club is able to increase sales by $80,000 and that as a result net op- erating income increases by $6,000. Further assume that this is possible without any increase in op- erating assets. What would be the club's return on investment (ROD? sales or operating assets. What would be the club's return on investment (ROI)? change in sales or net operating income. What would be the club's return on investment (ROI)? 3. Assume that the manager of the club is able to reduce expenses by $3,200 without any change in 4. Assume that the manager of the club is able to reduce operating assets by $20,000 without any