[The following information applies to the questions displayed below.] Fitness Fa

Question

[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

Required:

1.

Compute the Springfield club’s return on investment (ROI). (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Margin

___%

Turnover

ROI

___%

[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:

Explanation / Answer

Sales $ 870,000 Net operating income $   27,840 Average operating assets $ 100,000 Margin = Net Opertaing Income/Sales 3.20% Turnover $     870,000 ROI = Net Operating Income/Average operating assets 27.84% Sales to assets = sales/assets 8.7

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