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answer questions 1-6 thank you , format is simiar to requirement 2's The contribution format income statement for Huerra Company for last year is given
answer questions 1-6 thank you , format is simiar to requirement 2's
The contribution format income statement for Huerra Company for last year is given below. $ Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes 40% Net income Total 996, eee 597,6ee 398, 400 32e, 4ee 78, eee 31, 2ee 46, see Unit $ 49.80 29.88 19.92 16.02 3.98 1.56 $ 2.34 $ The company had average operating assets of $496,000 during the year Required: 1. Compute the company's return on investment (Ron for the period using the ROI formula stated in terms of margin and turnover. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above 2. Using Lean Production, the company is able to reduce the average level of inventory by $105.000. (The released funds are used to pay off short-term creditors) 3. The company achieves a cost savings of $9.000 per year by using less costly materials 4 The company issues bonds and uses the proceeds to purchase machinery and equipment that increases averace operatina assets Step by Step Solution
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