Problem 11-20 Return on Investment (ROI) Analysis [L011-1] The contribution format income statement for Huerra Company for last year is given below. Sales Variable expenses Contribution margin Fixed xpenses Net operating incone income taxes @ 4e% Net incone $ 1,0e,eee 5e.80 82,88 49,280 2.46 The company had average operating assets of $496,000 during the year Required: 1 Compute the company's return on investment RO) for the period using the ROl formula stated in tems of margin and tumover For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events descrbed. and then compute the new ROl figure. Consider each question seperately, starting in eech case from the date used to compute the original ROl in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $99.000(The released funds are used to pay off short-term creditors.) 3. The company achieves a cost savings of $15.000 per year by using less costly materials 4. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases average operating assets by $126.000, Interest on the bonds is $15.000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $6,000 per year. 5. Sales are increased by 10%; operating assets remain unchanged. 6. At the beginning of the year, obsolete inventory carried on the books at e cost of $15,000 is scrapped and written off as a loss. 7. At the beginning of the year, the company uses $178,000 of cash (recelved on accounts recelvable) to repurchase and retire some of ts common stock. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6Required 7 Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnovar (Round your intermadiate calculations and final anawer to 2 decimal places.) Margin Tumover