Required information The following information applies to the questions displaye

Question

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: Sales Net operating income Average operating assets 100,000 940,000 36,660 The following questions are to be considered independently. Required: 1. Compute the Springfield club's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Returnoninvestment0R001 1]

Explanation / Answer

Answer

Working

Original Case [Answer 1]

[Answer 2]

[Answer 3]

[Answer 4]

A

Sales

940000

1034000

940000

940000

B

Operating expenses

903340

988504

899580

903340

C=A-B

Net Operating Income

36660

45496

40420

36660

D

Average operating assets

100000

100000

100000

80000

E=C/D

ROI

36.66%

45.50%

40.42%

45.83%

Working

Original Case [Answer 1]

[Answer 2]

[Answer 3]

[Answer 4]

A

Sales

940000

1034000

940000

940000

B

Operating expenses

903340

988504

899580

903340

C=A-B

Net Operating Income

36660

45496

40420

36660

D

Average operating assets

100000

100000

100000

80000

E=C/D

ROI

36.66%

45.50%

40.42%

45.83%

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.