Question

! Required information Exercise 10-11 Effects of Changes in Profits and Assets on Return on Investment (ROI) [LO10-1] [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: $ 790,000 Sales Net operating income Average operating assets 18,960 $100,00e The following questions are to be considered independently.

Answer 1

1)	ROI = 18960/100000 =	18.96%
2)	ROI = (18960+6241)/100000 =	25.20%
3)	ROI = (18960+3160)/100000 =	22.12%
4)	ROI = 18960/50000 =	37.92%