The contribution format income statement for Huerra Company for last year is given below. Sales Variable expenses Contribution margin Fixed penses Diet operating Income Income taxes @ 10% Net Income Total Unit $ 1,800,000 $ 50.00 600,000 30.es 400,000 20.ee 318,000 15.90 82,800 4.10 32,800 1.64 $ 49,200 52.46 The company had average operating assets of $503,000 during the year. Required: 1. Compute the company's return on investment (RO) for the period using the ROI formulo stated in terms of margin and turnover 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 2. Using Lean Production, the company is able to reduce the average lever det inventory by $100,000. (The released funds are used to pay off short-term creditors) 3. The company achieves a cost savings of $9.000 per year by using less costly materials 4. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases average operating assets by $123.000. Interest on the bonds is $17000 per year. Sales remain unchanged The new, more efficient equipment reduces production costs by $4.000 per year 5. As a result of a more intense effors by salespeople, sales are increased by 20% operating assets remain unchanged. by $123,000. Interest on the bonds is $17.000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per year. 5. As a result of a more intense effort by salespeople, 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 7 At the beginning of the year, the company uses $183,000 of cash (received on accounts receivable) to repurchase and retire som 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 2 Compute the company's return on investment (ROI) for the period the ROI formula stated in terms of margin and turnover (Round your intermediate calculations and final answers to 2 decimal places.) Margin Turnover ROI Required 2 > by $123,000. Interest on the bonds is $17,000 per year. Sales remain unchanged. The new, more efficient equipm production costs by $4,000 per year. 5. As a result of a more intense effort by salespeople, sales are increased by 20%; operating assets remain unchar 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $17,000 is scrapped and writte 7. At the beginning of the year, the company uses $183,000 of cash (received on accounts receivable) to repurchas of its common stock. Complete this question by entering your answers in the tabs below. Required 1 Required Required 3 Required 4 Required 5 Required 6 Required 7 Using Lean Production, the company is able to reduce the average level of inventory by $100,000. (The released funds are used to pay off short-term creditors.) (Round your intermediate calculations and final answers to 2 decimal places Effect % Margin Turnover ROL by $123.000. Interest on the bonds is $17,000 per year. Sales remain unchanged. The new, more efficient equipme- production costs by $4,000 per year. 5. As a result of a more intense effort by salespeople, sales are increased by 20%; operating assets remain unchan 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $17.000 is scrapped and written 7. At the beginning of the year, the company uses $183,000 of cash (received on accounts receivable) to repurchase of its common stock Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 Required Required 6 Required 7 The company achieves a cost savings of $9,000 per year by using less costly materials. (Round your intermediate calculation and final answers to 2 decimal places.) Effect Margin Turnover ROI by $123,000. Interest on the bonds is $17.000 per year. Sales remain unchanged. The new, more efficient equipment reduce production costs by $4,000 per year 5. As a result of a more intense effort by salespeople, 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 7. At the beginning of the year, the company uses $183,000 of cash (received on accounts receivable) to repurchase and retir 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 The company issues bonds and uses the proceeds to purchase machinery and equipment that increases average operating assets by $123,000. Interest on the bonds is $17,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per year. Do not round intermediate calculations and round your final answers to 2 decimal places) Show less Effect Margin Tumove ROC by $123,000. Interest on the bonds is $17.000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per year. 5. As a result of a more intense effort by salespeople, 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. 7 At the beginning of the year, the company uses $183,000 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 salespeople, sales are increased by 2096; operating assets remain unchanged. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin Tumover ROI by $123,000. Interest on the bonds is $17,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per year. 5. As a result of a more intense effort by salespeople, 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, 7 At the beginning of the year, the company uses $183,000 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 Required 6 Required 7 At the beginning of the year, the company uses $183,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your intermediate calculations and float answers to 2 decimal places.) Effect Margin Tumove ROL