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I only need help with the incorrect answers that are red. The correct ones are green. Thank you. The contribution format income statement for Strickland,
I only need help with the incorrect answers that are red. The correct ones are green. Thank you.
The contribution format income statement for Strickland, Inc., for its most recent period is given below: Unit Total 122,000 56.10 Sales 673,200 Variable expenses 33.66 Contribution margin 448,800 22.44 Fixed expenses 351,000 17.55 97,800 Net operating income 4.89 Income taxes @40% 39.120 1.96 58,680 2.93 Net income The company had average operating assets of $558,000 during the period Required 1. Compute the company's return on investment (RO) for the period using the ROI formula stated in terms of margin and turnover. (Round your intermediate calculations and final answer to 2 decimal places (i e., 0.1234 should be entered as 12.34).) Answer is complete and correct 17.53 RO 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 ROl figure. Consider each question separately, starting in each case from the original ROl computed in (1) above. 2. The company achieves a cost savings of $11,500 per period by using less costly materials. (Round your intermediate calculations and Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Answer is complete and correct Effect Margin 9.74 Increase 2.01 Unchanged Turnover 19.59 Increase ROStep by Step Solution
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