The contribution format income statement for Singh & Company for its year ended February 28, 2021 is given below: Sales units 10,000 Total Per Unit Sales $ 538,500 $ 53.85 Variable expenses 300,000 30.00 Contribution margin 238,500 $ 23.85 Fixed expenses 160,000 Operating income 78,500 Income taxes @ 40% 31,400 Net income $ 47,100 During the year the company had average operating assets of $ 250,000 The company's overall minimum required rate of return is 14% Required: 1(a). Compute the company's ROI for the period using the ROI formula stated in terms of margin and turnover. Margin Turnover R.O.I. 1(b). Compute the company's residual income For each of the following questions, calculate the new ROI and residual income. Consider each question separately, starting in each case from the original ROI and Residual Income computed in (1) above. 2. Using lean production, the company is able to reduce the average level of inventory by $ 50,000 (The released funds are used to pay off bank loans.) ROI Residual Income 3. Operating assets remain unchanged and Sales are increased by $ 50,000 ROI Residual Income 4. $ 50,000 in cash (received on accounts receivable) in a plot of land that is to be held for At the beginning of the last fiscal year, the company invests possible future use as a plant site. ROI Residual Income