The contribution format income statement for Smith& Company for its most recent period is Total Unit $500,000$50.00 300,000 Sales 30.00 Less variable expenses 200 000 12000 160,000 Contribution margin Less fixed expenses 40,000 16,000 Operating income Less income taxes at 40% 24000 Net income The compar y haci average operating mva(ts of $250,000 di=ing the period 4. Sales are increased by s50,000 operating assets remain unchanged. (Round your answers to 1 decimal place.) Eflect Margin Turnover ROI 5. The company issues bonds and uses the proceeds to purchase $75.000 in machinery and equipment at the beginning of the period Interest on the bonds is $2,000 per period. Sales remain unchanged The new, more efficient equipment reduces production costs by $4 000 per period. (Round your answers to 1 decimal place.) Effect Margin Tumover ROI 6. The company invests $50,000 in cash (received on accounts receivable) in a plot of land that is to be held for possible future use as a plant site. (Round your answers to 1 decimal place.) Effect Margin Turnover ROI 7. Obsolete inventory carried on the books at a cost of $5,000 is scrapped and written off as a loss. (Round your answers to 2 decimal places) Effect Margin Turnover ROI