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[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

[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 $ 870,000
Net operating income $ 27,840
Average operating assets $ 100,000

8.

value: 12.50 points

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2. Assume that the manager of the club is able to increase sales by $87,000 and that, as a result, net operating income increases by $7,569. Further assume that this is possible without any increase in operating assets. What would be the clubs return on investment (ROI)? (Round your answers to 2 decimal places.)

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