plz answer all three parts Required informationSkip to question [The following information applies to the questions displayed below.] Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year: Sales$ 720,000Net operating income$ 12,240Average operating assets$ 100,000The following questions are to be considered independently. 3. Assume that the manager of the club is able to reduce expenses by $2,880 without any change in sales or average operating assets. What would be the club’s return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) !Required information[The following information appliesto the questions displayed below]Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the followingresults for the past year:SalesNet operating incomeAverage operating assets$ 720,000$ 12,240$ 100,000The following questions are to be considered independently.2. Assume that the manager of the club is able to increase sales by $72,000 and that, as a result, net operating income increases by$5,184. Further assume that this is possible without any increase in average operating assets. What would be the club's return oninvestment (RO1)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Return on investment (ROI) Required information[The following information applies to the questions displayed below]Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments asneeded, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the followingresults for the past year:$ 720,000$ 12,240$ 100,000SalesNet operating incomeAverage operating assetsThe following questions are to be considered independently.Required:1. Compute the Springfield club's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2decimal places.)Return on investment (ROI)%

Solution:- 1)calculation of return on investments as follows under:- Return on investments = Net…

Answered: plz answer all three parts Required…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1MAD

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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 needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:

Sales	$ 720,000
Net operating income	$ 12,240
Average operating assets	$ 100,000

The following questions are to be considered independently.

3. Assume that the manager of the club is able to reduce expenses by $2,880 without any change in sales or average operating assets. What would be the club’s return on investment (ROI)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

!
Required information
[The following information appliesto the questions displayed below]
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as
needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following
results for the past year:
Sales
Net operating income
Average operating assets
$ 720,000
$ 12,240
$ 100,000
The following questions are to be considered independently.
2. Assume that the manager of the club is able to increase sales by $72,000 and that, as a result, net operating income increases by
$5,184. Further assume that this is possible without any increase in average operating assets. What would be the club's return on
investment (RO1)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)

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