The contribution format income statement for Huerra Company for last year is given below Total Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income $ 998,000 598,800 399,200 319,200 80,000 32,000 $48,000 $ 49.90 29.94 19.96 15.96 4.00 1.60 $ 2.40 The company had average operating assets of $510,000 during the year. 5. Sales are increased by 10%; operating assets remain unchanged. (Round your answers to 2 decimal places.) Effect Margin Turnover ROI 6. Obsolete inventory carried on the books at a cost of $17,000 is scrapped and written off as a loss. (Round your answers to 2 decimal places.) Effect Margin Turnover ROI