recheck, 2a) net variance of $16 220 is not correct, and 4) Fixed overhead volume variance of $1290 is incorrect. The income statement for Huerra Company for last year is provided below: Total Unit Sales $ 44,400,000 $ 444.00 Less: Variable expenses 35,520,000 355.20 Contribution margin 8,880,000 88.80 Less: Fixed expense 4,440,000 44.40 Net operating income 4,440,000 44.40 Less: Income taxes @ 30% 1,332,000 13.32 Net income $ 3,108,000 $ 31.08 The company had average operating assets of $12,000,000 during the year. Required: 1. Compute the companys ROI for the period using the ROI formula stated in terms of margin and turnover. (Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 2. Consider each of the following questions separately and then compute the new ROI figure. Indicate whether the ROI will increase, decrease, or remain unchanged as a result of the events described. a. By using JIT, 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.) (Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) b. The company achieves a savings of $22 per unit by using cheaper materials. (Round intermediate and final answer to 2 decimal places.)