The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,002,000 601, 200 400, 800 322,800 78,000 31,200 $ 46,800 Unit $ 50.10 30.06 20.04 16.14 3.90 1.56 $ 2.34 The company had average operating assets of $490,000 during the year. 5. As a result of a more intense effort by sales people, sales are increased by 15%; operating assets remain unchanged. 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $20,000 is scrapped and written off as a loss. 7. At the beginning of the year, the company uses $180,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 As a result of a more intense effort by sales people, sales are increased by 15%; operating assets remain unchange your intermediate calculations and final answer to 2 decimal places.) Effect % Increase Margin Turnover Increase ROI % Increase