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The contribution format income statement for Strickland, Inc., for its most recent period is given below: Total Unit Sales $990,000 $49.50 Variable expenses 594,000 29.70

The contribution format income statement for Strickland, Inc., for its most recent period is given below:

Total Unit

Sales $990,000 $49.50

Variable expenses 594,000 29.70

Contribution margin 396,000 19.80

Fixed expenses 318,000 15.90

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 $503,000 during the period.

The company issues bonds and uses the proceeds to purchase $128,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $14,000 per period. Sales remain unchanged. The new, more efficient equipment reduces production costs by $5,000 per period.(Round your intermediate calculations and Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Margin: ? %

Turnover ? %

ROI ? %

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