Required information Exercise 10-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) (LO10-1) [The following information applies to the questions displayed below. Fitness Fanatics 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 Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $1,400,000 $ 70,000 $ 350,000 The following questions are to be considered independently. Exercise 10-11 Part 1 Required: . Compute the Springfield club's return on investment (ROI). Return on investment (ROI) 25% Required information Exercise 10-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) (LO10-1) (The following information applies to the questions displayed below. Fitness Fanatics 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 Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $1,400,000 $ 70,000 $ 350,000 The following questions are to be considered independently. Exercise 10-11 Part 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 average operating assets. What would be the club's return on vestment (ROI)? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Return on investment (ROI) Required information Exercise 10-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) (LO10-1] (The following information applies to the questions displayed below.) Fitness Fanatics 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 Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $ 1,400,000 $ 70,000 $ 350,000 The following questions are to be considered independently. Exercise 10-11 Part 3 3. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or average operating Issets. What would be the club's return on investment (ROI)? Return on investment (ROI) % Required information Exercise 10-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) (LO10-1) [The following information applies to the questions displayed below.) Fitness Fanatics 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 Springfield Club reported the following results for the past year: Sales Net operating income Average operating assets $ 1,400,000 $ 70,000 $ 350,000 The following questions are to be considered independently. Exercise 10-11 Part 4 1. Assume that the manager of the club is able to reduce average operating assets by $70,000 without any change in sales or net operating income. What would be the club's return on investment (ROI)? Return on investment (ROI)
