*I found the original margin(8.13%), turnover(2.04), and ROI(16.62%), but not sure how to change the formulas when the scenarios change.

*I was able to calculate one scenario change, which was if the company was able to reduce the average level of inventory by $93,000, I know the margin would remain at 8.13%, but the turnover would change to 2.52, and ROI would change to 20.49

The contribution format income statement for Huerra Company for last year is given below:

TotalUnit

Sales: $1,008,000$50.40

Variable Expenses: $604,80030.24

Contribution Margin: $403,20020.16

Fixed Expenses: $321,20016.06

Net Operating Income:$82,0004.10

Income taxes @ 40%: $32,8001.64

Net Income: $49,2002.46

The company had average operating assets of $493,000 during the year

I know the formulas, but not sure what needs to change based on the scenarios given below. I don't need anyone to give the answers, but just need help figuring out what part of the formula would change...?

1a. If the company achieves a cost savings of $13,000 per year by using less costly materials, how do I find the margin, turnover, and ROI change to?

Margin:

Turnover:

ROI:

1b.

If the company issues bonds and uses the proceeds to purchase $129,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $17,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per year. How do I find the margin, turnover, and ROI change to?

Margin:

Turnover:

ROI:

1c. If the sales are increased by 15%(operating assets remain unchanged), how do I find the margin, turnover, and ROI?

Margin:

Turnover:

ROI:

1d. If obsolete inventory carried on the books at a cost of $17,000 is scrapped and written off as a loss, how do I find the margin, turnover, and ROI change to?

Margin:

Turnover:

ROI:

1e.

If the company uses $178,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock, how do I find the margin, turnover, and ROI change to?

Margin:

Turnover:

ROI: