FysiQ is a chain of fitness centres in South Africa. The managers of the centres, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). One of the clubs within FysiQ reported the following results for the past year:

Required
The following questions are to be considered independently. Carry out all computations to two decimal places.
1. Compute the club’s return on investment (ROI).
2. Assume that the manager of the club is able to increase revenue by R800,000 and that as a result operating profit increases by R60,000. Further assume that this is possible without any increase in operating assets. What would be the club’s return on investment (ROI)?
3. Assume that the manager of the club is able to reduce expenses by R32,000 without any change in revenue or operating assets. What would be the club’s return on investment (ROI)?
4. Assume that the manager of the club is able to reduce operating assets by R200,000 without any change in revenue or operating profit. What would be the centre’s return on investment (ROI)?

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Revenue Operating profit Average operating assets R8,000,000 160,000 1,000,000