Question: Please answer all 4 requirements! Thank you! Required information [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of

Please answer all 4 requirements! Thank you!

Please answer all 4 requirements! Thank you! Required information [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

Required information [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: Required: 1. Compute the Springfield club's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. Assume that the manager of the club is able to increase sales by $93,000 and that, as a result, net operating income increases by $8,649. Further assume that this is possible without any increase in average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. Assume that the manager of the club is able to reduce expenses by $3,720 without any change in sales or average operating assets. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4. Assume that the manager of the club is able to reduce average operating assets by $40,000 without any change in sales or net operating income. What would be the club's return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!