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What would the club ROI be

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Reference no: EM132826904

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

Sales $500,000

Operating income 15,000

Average operating assets 80,000

Required - The following questions are to be considered independently.

1. Compute the club's ROI.

2. Assume 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?

Reference no: EM132826904

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