Solution-Explain what profit center is

Explain what profit center is

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Reference no: EM132740173

ABC Fitness is a regional chain of fitness clubs. Each club's manager has the authority to make investments as needed and is evaluated based largely on ROI. ABC Fitness's Brampton club reported the following results for the past year:

Sales $250,000
Variable costs 162,500
Controllable fixed costs 80,300
Average operating assets 90,000

Instructions

(a) Assume that the manager of the club is able to increase sales by $40,000. Further assume that this is possible without any increase in operating assets or controllable fixed costs. Compute the base-line and the adjusted ROIs. What should the manager do?

(b) Consider the balanced scorecard. Explain what the purpose of the internal process perspective is. Provide an example.

Reference no: EM132740173

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Explain what profit center is

Reference no: EM132740173

Reference no: EM132740173

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