The contribution format income statement for Huerra Company for last year is given below: Total bait Sales $ 1,864,888 $ 58.28I Variable expenses 602,488 38.12 Contribution margin 481,588 28.88 Fixed expenses 323,588 16.18 Net operating income TE,888 3.98 Income taxes @ 48% M Net income $ 46,888 $ 2.34 The company had average operating assets of $495,000 during the year. Required: 1. Compute the company's margin, turnover, and return on investment {R01} for the period. 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 each question separately, starting in each case from the data used to compute the original ROI in [1] above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $97,000. 3. The company achieves a cost savings of $11,000 per year by using less costly materials. 4. The company purchases machinery and equipment that increases average operating assets by $130,000. Sales remain unchanged. The new, more efcient equipment reduces production costs by $8,000 per year. 5. As a result of a more intense effort by sales people, sales are increased by 20%; operating assets remain unchanged. 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $17,000 is scrapped and written off as a loss, thereby lowering net operating income. 7. At the beginning of the year, the company uses $179,000 of cash [received on accounts receivable] to repurchase some of its common stock. Complete this question by entering your answers in the tabs below. [ Required 3 Required 4 W Required 7 Required 5 Required 6 Required 1 [ Required2 Compute the company's margin, turnover, and return on investment (ROI) for the period. (Round your intermediate calculations and final answer to 2 decimal places.) M argin Tumuver RID] Required: 1. Compute the company's margin, turnover, and return on investment {R01} for the period. 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 gure. Consider each question separately, starting in each case from the data used to compute the original ROI in [1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $97,000. 3. The company achieves a cost savings of $11,000 per year by using less costly materials. 4. The company purchases machinery and equipment that increases average operating assets by $130,000. Sales remain unchanged. The new, more efcient equipment reduces production costs by $8,000 per year. 5. As a result of a more intense effort by sales people, sales are increased by 20%; operating assets remain unchanged. 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $17,000 is scrapped and written off as a loss, thereby lowering net operating income. 7. At the beginning of the year, the company uses $179,000 of cash [received on accounts receivable] to repurchase some of its common stock. Completethis question Mentoring your answers in the minus below. Required 1 Required 2 Required 3 Required 7 Using Lean Production, the company is able to reduoe the average level of inventory by $9?,000. (Round your intermediate calculations and final answer to 2 decimal places.) ' Required4 ' Required ' Required Turnover _. ._._ _..._._.._ __._.r. .__._.___ r' __._.__._. __--- _J. _.._,_ _ _ l. _. J. __.. 5- As a result of a more intense effort by sates people sales are increased by 20%; operating assets remain unch 6- At the beginning of the year, obsolete inventory carried on the books at a cost of $11000 is scrapped and writt thereby lowering net operating income. 7:". At the beginning of the year, the company uses $1?EI,000 of cash [received on accounts receivable] to repurchz common stock- Complete this quesml by enten'ng your answers in the hubs below. ' Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required ? As a result of a more intense effort by sales people, sales are increased by 20%: operating assets remain unchanged. your intermediate calculations and nal answer to 2 decimal places.) Turnover _I_