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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.
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