Compute the club roi

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Reference no: EM133230959

FitPlus is a regional chain of health clubs. Each club's manager has the authority to make investments as needed and is evaluated based larely on ROI. FitPlus Club 52 reported the following results for the past year:

Sales $750,000

Operating income $26,250

Average operating assets $80,000

1. Compute the club's ROI.

2. Assuming that the manager of the club is able to increase sales by $80,000 and that as a result operating income increases by $6,000. Further assume that this is possible without any increase in operating assets. What would the club's ROI be?

3. Assume that the manager of the club is able to reduce expenses by $3,200 without any change in sales or operating assets. What would the club's ROI be?

4. Assume that the manager of the club is able to reduce operating assets by $20,000 without any change in sales or operating income. What would the club's ROI be?

Reference no: EM133230959

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