Part 1 Silver Fitness 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 Colorado Springs' club reported the following results for the past year: Sales Net Operating Income Average Operating Assets $1,400,000 $70,000 $350,000 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 $70,000 and that, as a result, net operating income increases by $18,200. Further assume that this is possible without any increase in operating assets. What would be the club's new return on investment (ROI)? 3. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or operating assets. What would be the club's return on investment (ROI)? 4. Assume that the manager of the club is able to reduce operating assets by $70,000 without any change in sales or net operating income. What would be the club's return on investment (ROI)? 5. Compute the club's profit margin and investment turnover. 6. Assume the manager can increase sales 20% while both profit margin and average operating assets remain unchanged. (a) Compute the club's ROI. (b) Compute the investment turnover