The Jungle Body 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 Jungle Body reported the following results for the past year Sales Net operating income Average operating assets $1,000,000 $220,000 $3,000,000 The following questions are to be considered independently 1 Compute the club's return on investment (ROI) 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 $28,000 Further assume that this is possible without any increase in operating assets What would be the club's return on investment 3 Assume that the manager of the club is able to reduce expenses by $30,000 without any change in sales or operating assets What would be the club's return on investment 4 Assume that the manager of the club is able to reduce operating assets by $500,000 without any change in sales or net operating income What would be the club's return on investment (ROI)

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The Jungle Body 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 Jungle Body reported the following results for the past year  Sales Net operating income  Average operating assets  $1,000,000 $220,000 $3,000,000 The following questions are to be considered independently  1  Compute the club's return on investment (ROI)  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 $28,000  Further assume that this is possible without any increase in operating assets  What would be the club's return on investment  3  Assume that the manager of the club is able to reduce expenses by $30,000 without any change in sales or operating assets  What would be the club's return on investment  4  Assume that the manager of the club is able to reduce operating assets by $500,000 without any change in sales or net operating income  What would be the club's return on investment (ROI)

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

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