The contribution format income statement for Huerra Company for last year is given below:

	Total		Unit
Sales	$	994,000	$	49.70
Variable expenses		596,400		29.82
Contribution margin		397,600		19.88
Fixed expenses		315,600		15.78
Net operating income		82,000		4.10
Income taxes @ 40%		32,800		1.64
Net income	$	49,200	$	2.46

Compute the companys return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Round your intermediate calculations and final answers to 2 decimal places.)

Margin		%
Turnover
ROI		%

Using Lean Production, the company is able to reduce the average level of inventory by $103,000. (The released funds are used to pay off short-term creditors.) (Round your intermediate calculations and final answers to 2 decimal places.)

			Effect
Margin		%	Decrease
Turnover			Decrease
ROI		%	Decrease

The company achieves a cost savings of $11,000 per year by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.)

			Effect
Margin		%
Turnover
ROI

The company issues bonds and uses the proceeds to purchase machinery and equipment that increases average operating assets by $129,000. Interest on the bonds is $12,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $5,000 per year. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

			Effect
Margin		%
Turnover
ROI		%

As a result of a more intense effort by salespeople, sales are increased by 15%; operating assets remain unchanged. (Round your intermediate calculations and final answers to 2 decimal places.)

			Effect
Margin		%
Turnover
ROI		%

At the beginning of the year, obsolete inventory carried on the books at a cost of $15,000 is scrapped and written off as a loss. (Round your intermediate calculations and final answers to 2 decimal places.)

			Effect
Margin		%
Turnover
ROI		%

At the beginning of the year, the company uses $175,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your intermediate calculations and final answers to 2 decimal places.)

			Effect
Margin		%
Turn.. v			.
ROI		%