Required information. (The following information applies to the questions displayed below.) Fitness Fanatics is a regional chain of health clubs that evaluates its club managers based 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 The following questions are to be considered independently. $ 920,000 $ 34,040 $ 100,000 3. Assume the club manager can reduce expenses by $3,680 without any change in sales or average operating assets. What would be the club's return on investment (ROI)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Retum on investment (ROI)

Required information. (The following information applies to the questions displayed below.) Fitness Fanatics is a regional chain of health clubs that evaluates its club managers based 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 The following questions are to be considered independently. $ 920,000 $ 34,040 $ 100,000 3. Assume the club manager can reduce expenses by $3,680 without any change in sales or average operating assets. What would be the club's return on investment (ROI)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Retum on investment (ROI)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...

See similar textbooks

Similar questions

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. 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)?
How can get this problem resolve? 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 $ 810,000 Net operating income $ 21,060 Average operating assets $ 100,000 The following questions are to be considered independently. 4. Assume that the manager of the club is able to reduce average operating assets by $40,000 without any change in sales or net operating income. What would be the club’s return on investment
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. 4. Assume that the manager of the club is able to reduce average operating assets by $20,000 without any change in sales or net operating income. What would be the club's return on investment (ROI)?
Pecs Alley is a regional chain of health clubs. The managers of the clubs, who have authority to makeinvestments as needed, are evaluated based largely on return on investment (ROI). The Springfield Clubreported the following results for the past year:Sales .................................................................................. $1,400,000Net operating income ......................................................... $70,000Average operating assets ................................................... $350,000Required:The following questions are to be considered independently. Carry out all computations to two decimalplaces.1. Compute the club’s return on investment (ROI).2. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, netoperating income increases by $18,200. Further assume that this is possible without any increase inoperating assets. What would be the club’s return on investment (ROI)?3. Assume that the manager of the club is…
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. 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 (ROI)?
Effects of Changes in Profits and Assets on Return on Investment (ROI) 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: Required: The following questions are to be considered independently. Carry out all computations to two decimal places. 1. Compute the Springfield club’s return on investment (ROI). 2. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further assume that this is possible without any increase in average operating assets. What would be the club’s return on investment (ROI)? 3. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or average operating assets. What would be the club’s return on investment (ROI)? 4.…
A family friend has asked your help in analyzing the operations of three anonymous companies operatingin the same service sector industry. Supply the missing data in the table below:CompanyA B CSales .............................................................. $9,000,000 $7,000,000 $4,500,000Net operating income ................................... $ ? $ 280,000 $ ?Average operating assets ............................. $3,000,000 $ ? $1,800,000Return on investment (ROI) .......................... 18% 14% ?Minimum required rate of return:Percentage ................................................ 16% ? 15%Dollar amount ............................................ $ ? $ 320,000 $ ?Residual income ............................................ $ ? $ ? $ 90,000
Please send answer in chart set up Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Income AverageInvested Assets Electronics $ 39,840,000 $ 2,988,000 $ 16,600,000 Sporting goods 25,200,000 2,142,000 12,600,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted?
The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
Hogue Sports Hut provides individual instruction and coaching to children participating in the city's baseball, softball, basketball, and soccer youth leagues. Last year's results were as follows: Sales revenue $950,000 Variable expenses 646,000 Contribution margin 304,000 Fixed expenses 182,400 Operating income $ 121,600 Required a.What is Hogue Sports Hut's degree of operating leverage? b.If Anna Hogue, the company's president, is successful in increasing sales revenue by 8%, by what percent will the company's operating income increase? c.After achieving the sales increase in part (b), what will be the company's new operating income? d.After achieving the sales increase in part (b), what will be the company's new operating leverage?
The Break Division of Zoe motors Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Break Division’s segment income? B. If the manager of the Break Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures sold to consumers through home improvement and hardware stores. Cost of goods sold represents 40% of net sales. Marketing expenses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $3 million per year and sales commissions (5% of sales). The company spent $3 million on advertising last year,and freight costs were 10% of sales. Other costs include $2 million for managerial salaries and expenses for the marketing function and another $3 million for indirect overhead allocated to the division. a. Develop the profit-and-loss statement if net sales were $20 million last year.b. Develop the profit-and-loss statement if net sales were $40 million last year.c. Calculate Westgate’s break-even sales.