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 $ 1,006,000 603,600 402,400 320,400 82,000 32,800 $ 49,200 $ 50.30 30.18 20.12 16.02 4.10 1.64 $ 2.46 The company had average operating assets of $500,000 during the year. 4. The company issues bonds and uses the proceeds to purchase $129,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $13,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $3,000 per year. (Round your answers to 2 decimal places.) Effect Margin Turnover ROI 4.29 % 2.01 Decrea check My Work | nchanged 8.62% : Decrease ! : 5. Sales are increased by 10%; operating assets remain unchanged. (Round your answers to 2 decimal places.) Effect 6.631% increase Margin Turnover ROI 2.21 ncrease 14.65%. Increase ! . 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 7. The company uses $179,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your answers to 2 decimal places.) Effect Margin Turnover ROI