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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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stich3 [128]

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The correct answer is C. Common fixed costs.

Explanation:

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2 years ago
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<h3>What does simple interest and compound interest mean?</h3>

Simple interest rate is the interest that is paid only on the principal portion of a loan. This means that the debtor does not pays interest on the interest rate already accrued. This differs from compound interest where the debt holder pays interest on the principal and the interest rate already accrued.

This means that an account that earns a compound interest would have a higher yield when compared with an account that earns a simple interest.

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When a manager deciding how to most fairly identify internal candidates for a promotion she is making a __________.
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According to the "marketing rules" we discussed in class, if you cannot be first in a product category, Group of answer choices
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