Increase in net operating income = $5,041
Net operating income after increase = Net operating income before increase + Increase in net operating income
= 11,360 + 5,041
= $16,401
Return on investment = Net operating income/Average operating assets
= 16,401/100,000
= 16.40%
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Required information The following information applies to the questions displayed below) Fitness Fanatics is a regional...
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 $ 710,000 $ 11,360 $100,000 The following questions are to be considered independently. sets by 550.000 witho 4. Assume...
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 Net operating income Average operating assets $ $ $ 710.00 11.360 lee, The following questions are to be considered independently. Required: 1 Compute the Springfield club's...
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 728,008 $ 12,240 The following questions are to be considered independently 2. Assume that the manager of the club...
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 $ 1,400,000 Net operating income $ 70,000 Average operating assets $ 350,000 The following questions are to be considered independently. Required: 1. Compute the Springfield...
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 $ 1,400,000 Net operating income $ 70,000 Average operating assets $ 350,000 The following questions are to be considered independently. 2. Assume that the manager...
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