Business, 07.03.2020 04:26 jasmineharris121

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

$

700,000

Net operating income

$

10,500

Average operating assets

$

100,000

1. Compute the Springfield club’s return on investment (ROI). (Round your answers to 2 decimal places.)

Margin = ….% ?

Turover.=….?

ROI =…..%?

2. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $4,900. Further assume that this is possible without any increase in operating assets. What would be the club’s return on investment (ROI)? (Round your answers to 2 decimal places.)

Margin = ….% ?

Turover.=….?

ROI =…..%?

3. Assume that the manager of the club is able to reduce expenses by $2,800 without any change in sales or operating assets. What would be the club’s return on investment (ROI)? (Round your answers to 2 decimal places.)

Margin = ….% ?

Turover.=….?

ROI =…..%?

4. Assume that the manager of the club is able to reduce operating assets by $30,000 without any change in sales or net operating income. What would be the club’s return on investment (ROI)? (Round your answers to 2 decimal places

Margin = ….% ?

Turover.=….?

ROI =…..%?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 09:00

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer

Answers: 3

Answer

Business, 22.06.2019 13:20

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.

Answers: 1

Answer

Business, 22.06.2019 14:30

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false

Answers: 1

Answer

Business, 22.06.2019 20:40

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?

Answers: 1

Answer

You know the right answer?

Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority...

Questions