The following Information applies to the questions displayed below. Fitness Fana
ID: 2581823 • Letter: T
Question
The following Information applies to the questions displayed below. Fitness Fanatics is a reglonal 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 (ROl). The company's Springfield Club reported the following results for the past year Sales Net operating Income Average operating assets $740.000 $ 14.060 $100.000 6 value 0.50 points Required: 1. Compute the Springfield club's return on investment (ROI). (Round your Turnover answer to 2 decimal places. Round your Margin and ROl percentage answers to 2 decimal places.e., 0.1234 should be entered as 12.34).) Margin Tumover ROI References e Book & Resources Worksheet Difficulty: 2 Medium value 0.50 points 2. Assume that the manager of the club is able to increase sales by $74,000 and that, as a result, net operating income increases by $5,476. Further assume that this is possible without any increase in operating assets. 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 2 decimal places i.e. 0.1234 should be entered as 12.34).) Margin Turnover ROIExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Amount Q6 Sales 740,000.00 Net operating income 14,060.00 Average operating assets 100,000.00 Margin %= 14060/740000 1.90% Turnover = 740,000/100,000 7.40 ROI = 14060/100,000 or 1.90%*7.40 14.06% Q7 Sales = 740000+74000 814,000.00 Net operating income = 14060 + 5476 19,536.00 Average operating assets 100,000.00 Margin %= 19536/814000 2.40% Turnover = 814000/100000 8.14 ROI = 19536/100,000 or 2.40%*8.14 19.54%