The contribution format income statement for Strickland, Inc., for its most recent period is given below: Total 050,000 52.50 Unit Sales Variable expenses 630,000 31.50 Contribution margin Fixed expenses 420,000 21.00 333,000 16.65 Net operating income Income taxes @ 40% 87,000 34,800 4.35 1.74 Net income $ 52,200 S 2.61 The company had average operating assets of $528,000 during the period Required 1. Compute the company's 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 places (i.e., 0.1234 should be entered as 12.34.) ROI For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the original ROl computed in (1) above 2. The company achieves a cost savings of $8,500 per period by using less costly materials. (Round your intermediate calculations and Turnover answer 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).) Effect Margin Turnover ROI 3. Using Lean Production, the company is able to reduce the average level of inventory by $96,000. (The released funds are used to pay off bank loans.) (Round your intermediate calculations and Turnover answer 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.) Effect Margin Turnover ROI 4. Sales are increased by $223,000; operating assets remain unchanged. (Round your intermediate calculations and Turnover answer 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).) Effect Margin Turnover ROI