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

	Total		Unit
Sales	$	1,004,000	$	50.20
Variable expenses		602,400		30.12
Contribution margin		401,600		20.08
Fixed expenses		323,600		16.18
Net operating income		78,000		3.90
Income taxes @ 40%		31,200		1.56
Net income	$	46,800	$	2.34

The company had average operating assets of $493,000 during the year.

Required:

1.

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 answer to 2 decimal

Margin % ?

Turnover ?

ROI % ?

2.	Using Lean Production, the company is able to reduce the average level of inventory by $105,000. (The released funds are used to pay off short-term creditors.) (Round your answers to 2 decimal places.)
	Margin % ? effect of each Turnover ? ROI % ?

3.	The company achieves a cost savings of $9,000 per year by using less costly materials. (Round your answers to 2 decimal places.) Margin % ? Turnover ? ROI % ?

4.	The company issues bonds and uses the proceeds to purchase $123,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $19,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $6,000 per year. (Round your answers to 2 decimal places.) Margin % ? Turnover ? ROI % ?

5.	Sales are increased by 15%; operating assets remain unchanged. (Round your answers to 2 decimal places.)
	Margin % ? Turnover ? ROI % ?

6.	Obsolete inventory carried on the books at a cost of $18,000 is scrapped and written off as a loss.(Round your answers to 2 decimal places.) Margin % ? Turnover ? ROI % ?

7.	The company uses $183,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your answers to 2 decimal places.) Margin % ? Turnover ? ROI % ?