The contribution format income statement for Huerra Company for last year is given below Sales Variable ex Contribution margin Fixed expenses fort operating Inc Income Taxes - et Inco Total Unit 11,00,000 $50.10 601 200 0.es 400,00 20.04 310.00 15294 82,000 32,00 $ 49,200 52.46 The company had average operating assets of $505000 during the year Required: 1. Compute the company's return on investment (RO for the period using the ROI formula 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 cach question separately starting in each caso from the data used to compute the original Rolin (1) above 2. Using Lean Production, the company is able to reduce the average level of inventory by 592,000 (The released funds are used to pay off short-term creditor) 3 The company achieves a cost savings of $6,000 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 $19.000 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 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 $176.000 of cash received on accounts receivable to repurchase and retire some of its common stock tch O II E 6 R K Using Lean Production, the company is able to touce the average lever o inventory by 394 in release funds are used to pay off short-term creditor) 3. The company achieves a cost savings of $6,000 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 $19.000 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 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 $176,000 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 Required Herred Required 4 Required Required Required Compute the company's return on investment (ROI) for the pened using the ROI fomuta stated in terms of margin and turnover. (Round your intermediate calculations and final answers to 2 decimal places) Margin Turnover RO Required 2 > 16 W - E R