Fitness Fanatics is a regional chain of health clubs. The managers of the clubs,
ID: 2579038 • Letter: F
Question
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:
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.)
Sales $ 760,000 Net operating income $ 15,960 Average operating assets $ 100,000Explanation / Answer
return on investment (ROI) = Net operating income / Average operating assets
return on investment (ROI) = $15,960 / $100,000
return on investment (ROI) = 15.96%
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