0.50 points Required Information 3. Assume that the manager of the club is able

Question

0.50 points Required Information 3. Assume that the manager of the club is able to reduce expenses by $2,960 without any change in sales The following information applies to the questions displayed below] or operating assets. What would be the club's returm on investment (ROl)? (Round your Tunover answer to 2 decimal places. Round your Margin and ROl percentage answers to 2 decimal places i.e, 0.1234 should be entered as 12.34)) tness Fanatics is a regonal chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on nvestment (ROI. The company's Springfield Club reponed the following results for the past Margin ROI Sales Ne: operating Income Average operating assets 740,000 14,060 100,000 References eBook & Resources Worksheet Difficulty: 2 Medium (ROI) and show ho 0.50 points 4. Assume that the manager of the club is able to reduce operating assets by $20,000 without any change in sales or net operating income. What would be the club's return on investment (ROI)? (Round your Turnover answer to 2 decimal places. Round your Margin and ROl percentage answers to z decimal places (i.e., 0.1234 should be entered as 12.34)) Marg n ROI References eBook & Resources Worksheet Difficulty: 2 Medium Learning Objective: 09-01 Compute return on investment (ROI) and show ho

Explanation / Answer

Margin = Net operating income/Sales Turnover = Sales/Average operating assets ROI =Margin*Turnover 3 Margin 2.30% =(14060+2960)/740000 Turnover 7.4 =740000/100000 ROI 17.02% 4 Margin 1.90% =14060/740000 Turnover 9.25 =740000/(100000-20000) ROI 17.58%

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