please solve the following question,

please solve the following question,

3. The company achieves a cost savings of $2.000 per year by using less coul materials. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases throughout time and MCE. PROBLEM 10-20 Return on investment (ROI) Analysis L010-1 The contribution format income statement for Huern Company for last year is given below: Sales. Variable expenses Contribution margin. Fixed expenses. Net operating income Income taxes a 30% Net income Total $4,000,000 2.800,000 1.200,000 840,000 360,000 108.000 $ 252.000 Unit $80.00 56.00 24,00 16.80 7.20 2.16 $ 5.04 The company had average operating assets of $2,000,000 during the year, Required: Compute the company's return on investment (ROI) for the period using the Rol fornula stated in fernis 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 cach question separately, starting in each cuse from the data used to compute the Uning Lean Production, the company is able to reduce the average level of inventory by $400.000 The released funds are used to pay off short-term creditors) 1 erage operating assets by $500,000. Interest at the bonds is $60.000 per year. Sales mumain uchunpel. The new, more efficient equipment reduces production costs by $20,000 per year. 5. As a rest of a more intense effort by salespeople. sules are increased by 2016. operating set remain unchanged 0 At the beginning of the year, obsolete inventory carried on the books at a cost of $40,000 is scrapped und written off as a los 7. At the beginning of the year, the company uses $200,000 of cash (receive an accounts receivable to reparchase and retire some of its common stock