0 Required information [The following information applies to the questions displayed below] The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year: $ 340,000 $ 24,360 $ 100,000 The following questions are to be considered independently. Sales Net operating income Average operating assets 2. Assume that the manager of the club is able to increase sales by $84,000 and that, as a result, net operating income increases by $7,056. Further assume that this is possible without any increase in 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.) Return on investment (ROI)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below]
The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on
return on investment (ROI). The company's X Club reported the following results for the past year:
Sales
$ 840,000
Net operating income
$ 24,360
Average operating assets
$ 100,000
The following questions are to be considered independently.
2. Assume that the manager of the club is able to increase sales by $84,000 and that, as a result, net operating income increases by
$7,056. Further assume that this is possible without any increase in 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.)
Return on investment (ROI)
Transcribed Image Text:Required information [The following information applies to the questions displayed below] The managers of the XYZ clubs, who have the authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's X Club reported the following results for the past year: Sales $ 840,000 Net operating income $ 24,360 Average operating assets $ 100,000 The following questions are to be considered independently. 2. Assume that the manager of the club is able to increase sales by $84,000 and that, as a result, net operating income increases by $7,056. Further assume that this is possible without any increase in 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.) Return on investment (ROI)
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