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The Abs Shoppe is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated

The Abs Shoppe 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 Abs Shoppe reported the following results for the past year:

Sales $ 800,000
Net operating income $ 16,000
Average operating assets $ 100,000

1.

Compute the clubs margin, turnover and return on investment (ROI). (Round your answers to 1 decimal place.)

2.

Assume that the manager of the club is able to increase sales by $80,000 and that as a result net operating income increases by $6,000. Further assume that this is possible without any increase in operating assets. What would be the clubs margin, turnover and return on investment (ROI)? (Do not round intermediate calculations. Round your answers to 1 decimal place.)

3.

Assume that the manager of the club is able to reduce expenses by $3,200 without any change in sales or operating assets. What would be the clubs margin, turnover and return on investment (ROI)? (Do not round intermediate calculations. Round your answers to 1 decimal place.)

4.

Assume that the manager of the club is able to reduce operating assets by $20,000 without any change in sales or net operating income. What would be the clubs margin, turnover and return on investment (ROI)? (Do not round intermediate calculations. Round your answers to 1 decimal place.)

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