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Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as ne2. Assume that the manager of the club is able to increase sales by $82,000 and that, as a result, net operating income incre3. Assume that the manager of the club is able to reduce expenses by $3,280 without any change in sales or average operating4. Assume that the manager of the club is able to reduce average operating assets by $50,000 without any change in sales or n

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Answer #1

1) ROI = Net income/Average operating assets = 22140/100000 = 22.14%

2) ROI = (22140+6724)/100000 = 28.86%

3) ROI = (22140+3280)/100000 = 25.42%

4) ROI = 22140/50000 = 44.28%

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