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McDougal's Scottish Dining is a Canadian owned franchise.The store managers in each location across Canada are evaluated based on the individual restaurants return on investment

McDougal's Scottish Dining is a Canadian owned franchise.The store managers in each location across Canada are evaluated based on the individual restaurants return on investment (ROI).Seamus, the Kelowna restaurant manager has set a goal to increase the Kelowna restaurants sales by $150,000.in the upcoming year.He believes this will increase the restaurants net operating income by $25,500.If he is able to meet this goal, assuming no increase in operating assets, what will the new ROI for the restaurant be?

Sales$1,200,000

Net operating income$210,000

Average operating assets$950,600

1.Calculate the current Kelowna locations ROI.

2.Calculate the ROI if the Kelowna location meets Seamus' goal.

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Mcdougal's Scottish Dining is a Canadian owned franchise. The store managers in each location across Canada are evaluated based on the individual restaurants return on investment (ROI). Seamus, the Kelowna restaurant manager has set a goal to increase the Kelowna restaurants sales by $150,000.in the upcoming year. He believes this will increase the restaurants net operating income by $25,500. If he is able to meet this goal, assuming no increase in operating assets, what will the new ROI for the restaurant be? Sales $1,200,000 Net operating income $210,000 Average operating assets $950,600 Required: 1. Calculate the current Kelowna locations ROI. (2 marks) (show all calculations) 2. Calculate the ROI if the Kelowna location meets Seamus' goal. (2 marks) (show all calculations)

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