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Contact [7]
3 years ago
14

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 $ 850,000 Net operating income $ 25,500 Average operating assets $ 100,000 The following questions are to be considered independently.
Assume that the manager of the club is able to reduce expenses by $3,400 without any change in sales or average operating assets. What would be the club’s return on investment (ROI)?
Business
1 answer:
AveGali [126]3 years ago
8 0

Answer:

Old ROI   = 25.5%

New ROI = 28.9%

Explanation:

Current ROI =  Net operating Income/Average Operating Assets

                   = ($ 25,500 /$ 100,000) *100%

                   = 25.5%

Assume manager of the club reduce expenses by $3,400 and variables remained unchanged.

New Net Operating Income = $25,500 + $3,400

                                               =  $28,900

Hence, New ROI = ($28,900/100,000) *100%

                            =28.9%

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Although GDP is a reasonably good measure of a nation's output. It does not necessarily include all transactions and production
Scorpion4ik [409]

Answer:

Options (a), (b) and (d) are correct.

Explanation:

Gross domestic product refers to the total value of production of goods and services during a period of time within the boundaries of the nation. GDP of a nation also represents the standard of living of that nation. If the GDP of a nation increases then it is assumed that the standard of living of that nation also increases.

But there are some flaws or loopholes in this assumption as non-marketing activities and the underground economy makes the GDP an imperfect measure of a particular economic activity.

Is doesn't includes the quality of goods received by the consumers as it doesn't contribute towards GDP of a nation.

It doesn't takes into account the non-market activities such as self service and house work. If a person is cleaning his home then this doesn't contribute towards GDP but if he hires someone to do the same job then then this will contribute towards the calculation of GDP as it is counted as a consumption expenditure.

Loss of enjoyment will also not counted while determining the GDP.

Government pay checks to soldiers will be included in the GDP because it increases the GDP of a nation.

8 0
2 years ago
On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted
Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:

Given: $2,500,000 (P/F , 5%, 5years) ;  0.78356 (factor for calculating the amount to be recieved after  5years)

= $2,500,000 * 0.78356

= $1,958,815.416

8 0
3 years ago
The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups tradit
Yuki888 [10]

Answer:

true

Explanation:

  • The given statement is true here because the purpose of Work Opportunity Credit is to encourage employers to hire people who are facing employment barriers and are resulting in high unemployment.
  • And examples of the target group are unemployed ex-servicemen, food stamp recipients etc..
  • so this is true statement

5 0
3 years ago
____ is a planning process falling under the Project Integration Management knowledge area. Schedule development Develop project
lianna [129]

Answer:

Develop project management plan

Explanation:

Project integration management is the coordination of all aspects of a project. It involves coordination of the following: tasks, stakeholders, resources, along with any issues arising from parties in the project, evaluating resources, and making choices between different lines of action.

So developing a project management plan is a process that fall under integration management as defined.

3 0
2 years ago
Read 2 more answers
The revenues of a company increased by 39% in year one and decreased 22% in year two. What is the overall change over the two-ye
Vlada [557]

the overall hange is a net-gain of 17% as the company's total revunue experienced an overall positive outcome over said two year period. :)

3 0
3 years ago
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