r r Problem 11-20 Return on Investment (ROI) Analysis [L011-1 The contribution formet income statement for Huerra Company for lest yeer is given below Total Unit Sales Variable expenses Contribution sargin Fixed expenses Net operating incoee Inco e taxes @ a0% Met income % 1.001 , e00 50.29 e. 12 401,680 28 25,600 16.28 602,408 5,600 2.8 The company hed everage operating assets of $501,000 during the year Required: s return on investment (ROl) for the period using the ROl formules tated in terms of margin and turnover For each of the following indicate of the events described, and then compute the new ROi figure. Consider eech question used to compute the original ROl in 1 above 2 Using Lean Production, t pay off short-term creditors.) 3. The compeny achieves e cost savings of $11.000 per year by using less costly materials ng questions, indicate whether the margin and turnover will increase, decreese or remain unchanged as a result the compeny is able to reduce the everage level of in i ventory by $t09000. (The releesed funds are used to 4. The e compeny issues bonds and uses the praceeds to purchase mechinery and e onds is $19000 per year. Seles remain unchenged. The new, more efficient equipment t increases average opereting assets by $123,000. Interest on the b production costs by $7000 per year 5. As a result h of a more intense effort by seles people, seles ere ingr 6. At the beginning of the yeer, obsolete inventory carried on the books at e cost of $19,000 i g assets remain unchanged scrapped and written aff as 7. At the beginning of the year. the company uses $182 000 of cash ( of its common stock a loss (received on accounts receivable) to repurchese and retire some Complete this question by entering your answers in the tabs below. Required 1 Raquired 2 Required 3 Required Requred 5 Required Required 7 Compute the company's return on investment ( turnover. (Round your inteemediate calculations and final answer to 2 decimal places.) RO) for the period using the ROI formula stated in terms of margin and Marge Turnove Required 2 > e here to search