Solution-Calculate the current Kelowna locations ROI

Calculate the current Kelowna locations ROI

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Reference no: EM132797263

Question - McDougal's Scottish Dining is a Canadian owned franchise. The store managers in each location across Canada are evaluated based on the individual restaurants return on investment (ROI). Seamus, the Kelowna restaurant manager has set a goal to increase the Kelowna restaurants sales by $150,000.in the upcoming year. He believes this will increase the restaurants net operating income by $25,500. If he is able to meet this goal, assuming no increase in operating assets, what will the new ROI for the restaurant be?

Sales $1,200,000

Net operating income $210,000

Average operating assets $950,600

Required -

1. Calculate the current Kelowna locations ROI.

2. Calculate the ROI if the Kelowna location meets Seamus' goal.

Reference no: EM132797263

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Calculate the current Kelowna locations ROI

Reference no: EM132797263

Reference no: EM132797263

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