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The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year:

Sales	$ 930,000
Net operating income	$ 35,340
Average operating assets	$ 100,000

The following questions are to be considered independently.

3. Assume that the manager of the club is able to reduce expenses by $3,720 without any change in sales or average operating assets. What would be the clubs return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)