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c) d) It will decrease it turnover decreases. It will decrease if turnover increases. For each of the following 3 situations, (a) indicate whether the margin (operating profit margin) will increase, decrease, or remain unchanged as a result of the events described; (b) indicate whether the turnover (asset turnover) will increase, decrease, or remain unchanged as a result of the events described; and (c) compute the new ROI. Consider each situation separately, starting in each case from the data in the table below that would be used to compute the original ROI. (3 marks) Operating Profit Average Operating Assets Total Sales $720,000 $4,000,000 $8,000,000 Note: For margin and turnover it is not necessary to compute the new value, only indicate the direction of the change, if any. (8) By not using JIT Inventory the company's average level of inventory increased by $800,000 Margin Turnover Aur (9) The company decreased wages by $64,000 in accordance with a new union agreement. Margin Turnover New ROI O. (10) The company uses excess cash to purchase $1,000,000 in machinery and equipment Sales remain unchanged. The new, more efficient equipment reduces production costs by $100,000 per year Margin Turnover | New RI