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ttps/ s G Googe G blackbord k-Go User Dashboard Q New Tab Search NKU Webmalt North Connect lomework isReg true&returnUr;: https%3A%2F%2 Help Save i 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 (RO) The company's Springfield Club reported the following results for the past year Sales Net operating Incone Average operating assets 5 850,000 $ 25,5e0 5 100,e06 The following questions are to be considered independently Exercise 11-11 Part 2 2. Assume that the manager of the club is able to increase sales by $85,000 and that as a result, net operating income increases by $7,225. 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 intermediste colculations. Round your answer to 2 decimal places.) 32 73s hpExplanation / Answer
Net operating income = 25500+7225 = 32725
Average operating assets = 100000
ROI = 32725*100/100000 = 32.73%
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