The contribution format income statement for Huerra Company for last year is given below:

	Total		Unit
Sales	$	996,000	$	49.80
Variable expenses		597,600		29.88
Contribution margin		398,400		19.92
Fixed expenses		316,400		15.82
Net operating income		82,000		4.10
Income taxes @ 40%		32,800		1.64
Net income	$	49,200	$	2.46

The company had average operating assets of $504,000 during the year.

The company had average operating a388ts of 5504,000 during the yean Reuimee the company 1. Compute the compamys return on investment (ROI) for the period using the ROI formula stated in tenms of margin and tunover.(Round your intermediate calculations and final answer to 2 decimal places Tumove resu at th events descnbe and he compute the new Ral t ure ons er ach uestion se ara starting in each case om he data used to con pute the onginal Fnr each o the n o nng uestions indicate whether he mar in a d turnover w increase, decrease or remain unchanged a ROI in (1) above. 2. Us sing Lean Production the company is able t o reduce the average level of invenlory by S97.000. (CThe released funds are used to pay off shorl-term cred tors.) (Round your answers to 2 decimal places Turnover