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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	$	900,000
Net operating income	$	31,500
Average operating assets	$	100,000

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 $3,600 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