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34kurt
3 years ago
8

Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as neede

d, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales $ 920,000 Net operating income $ 34,040 Average operating assets $ 100,000
Business
1 answer:
pantera1 [17]3 years ago
3 0

Answer:

34.04%

Explanation:

Data provided :

Total sales of the Springfield Club = $ 920,000

The net operating income of the company = $ 34,040

The average operating assets of the company = $ 100,000

now,

The return on investment will be calculated as:

Return on investment (ROI)= \frac{\textup{Net operating income}}{\textup{Average operating assets}}

on substituting the values, we get

ROI = \frac{\$\ 34,040}{\$\ 100,000}

or

ROI = 34.04%

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Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790,000. Tetious Dimensio
saveliy_v [14]

Answer:

$620,000

Explanation:

to determine the net cash flow generated by the project, we can use the indirect method to determine cash flows:

net income = $790,000 x (1 - 30%) =               $553,000

net income adjustments:

  • depreciation expense                              $190,000
  • increase in accounts payable                   $42,000
  • increase in accounts receivable             ($79,000)
  • increase in inventory                              <u>  ($86,000) </u>

Project's cash flow                                           $620,000

                                       Without the          With the         change

                                       project                  project

Accounts receivable     $5,000                  $84,000        $79,000

Inventory                     $98,000                 $184,000        $86,000

Accounts payable       $75,000                  $117,000        $42,000

6 0
3 years ago
Best Construction, Inc., and General Real Estate Corporation form a joint venture. A joint venture is usually formed for
STALIN [3.7K]

Answer:

for mutual benefits

Explanation:

A joint venture is a business arrangement made between two parties that agree to come together and unite all of their resources in order to accomplish a specific common goal. Joint ventures are usually formed for mutual benefits, both companies involved benefit greatly from reaching the end-goal that they are working towards, but which neither company could do it without the other's resources.

6 0
3 years ago
Pluto Inc. is computer technology corporation that has been manufacturing laptops for the last five years. Recently, in the face
Delicious77 [7]

Answer:

diversification

Explanation:

According to my research on ,different financial strategies I can say that based on the information provided within the question this is an example of diversification. This is the process of a business separating or varying it's range of products in their operations in order to reduce their risks in a certain market.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
If you cause a car accident, which type of insurance will require you to pay the least out of pocket? AHigh deductible plan BLow
Vesnalui [34]
A because if the person that you hit says you caused it for a reason
3 0
3 years ago
Read 2 more answers
has a margin of safety percentage of 20% based on its actual sales. The break-even point is $759000 and the variable expenses ar
lora16 [44]

Answer:  $379,500

Explanation:

Total Sales = <em>Break-even sales + Margin of Safety </em>

The Break-Even sales are therefore = 100% - 20%

= 80% of sales

Total Sales is therefore;

Break-even =   80% * Total Sales

Total Sales = Break-even/80%

= 759,000/0.8

= $948,750

Assuming no fixed costs, actual profit will be Sales less Variable expenses;

=Sales - Variable expenses  

= 1 - 60%

Actual profit = 40% * Sales

= 40% * 948,750

= $379,500

4 0
3 years ago
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