Required information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Required information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO11-1] (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 Net operating income Average operating assets $830,000 $ 23,240 $ 100,000 The following questions are to be considered independently. Exercise 11-12 Part 3 (Algo) 3. Assume that the manager of the club is able to reduce expenses by $3,320 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.) Return on investment (ROI) % Required information Exercise 11-12 (Algo) Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO11-1] (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 Net operating income Average operating assets $830,000 $ 23,240 $ 100,000 The following questions are to be considered independently. Exercise 11-12 Part 3 (Algo) 3. Assume that the manager of the club is able to reduce expenses by $3,320 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.) Return on investment (ROI) %
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Since the early 2000s, there has been a significant increase in the price of corn-based ethanol. a. A key input in the production of corn-based ethanol is corn. Use an appropriate diagram to explain...
-
A consumer entered into an agreement with Rent-It Corporation for the rental of a television set at a charge of $17 per week. The agreement also provides that if the renter chooses to rent the set...
-
The following data represent trunk circumferences (in mm) for a random sample of 60 four-year-old apple trees at East Malling Agriculture Research Station in England (Reference: S. C. Pearce,...
-
Partnerships have operating expenses each month. Advertising, depreciation, and rent expense are examples of those operating expenses. Controlling these expenses affects the net income of the...
-
The new director of special events at a large university has decided to completely revamp graduation ceremonies. Toward that end, a PERT chart of the major activities has been developed. The chart...
-
Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400...
-
Pears Inc. manufactures various type of cell phones with different capacities: Cell-Pro, Cell-Individual and Cell-Kids. Recently, the CEO has discovered that the actual contribution margins were...
-
County Symphony is preparing for a special holiday concert. Fixed costs associated with the concert are as follows. Rental of performance venue Performer compensation $4,000 $22,000 In addition,...
-
If contribution analysis is useful in this circumstance, does that mean we can conveniently ignore the allocated costs as not a viable part of a job's cost? What types of costs are being allocated?...
-
If there is excess capacity, the minimum acceptable price for a special order must cover: A. Only variable costs associated with the special order. B. Variable and incremental fixed costs associated...
-
c. What transfer price policy would you recommend if the Portneuf Mill always has idle (excess) capacity? Explain why this transfer price policy provides incentives for the managers to act in the...
-
1.) The Posneese Maggot Farm (a real place) sells three types of maggots. Standard maggots accounted for 50% of sales, while Small and Crunchy and Big and Chewy ones accounted for 25% each. Fixed...
-
On January 1, 2020, Caribou Explorations Limited (CEL) sold inventory costing $32,000 and, in exchange, received $6,000 cash and a $40,000 promissory note. The five-year note was repayable in equal...
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
_________ is the false belief that past outcomes affect future events.
-
Peoples concerns about fairness are illustrated in an experiment called the _________ game.
-
Behavioral economists say that people may treat \($1\) they received as a gift differently than \($1\) they earned through their hard work. They call this _________.
Study smarter with the SolutionInn App