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

The contribution format income statement for Strickland, Inc., for its most recent period is given below. Unit Total 990,000 49.50 Sales 594,000 29.70 Variable expenses 396,000 19.80 318,000 15.90 Contribution margin Fixed expenses Net operating income Income taxes @ 40% 78,000 31,200 3.90 1.56 Net income $ 46,800 2.34 The company had average operating assets of $503,000 during the period Required: 1. Compute the company's return on investment (ROI) for the period using the ROl 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).) 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 ROl figure Consider each question separately, starting in each case from the original ROI computed in (1) above 2. The company achieves a cost savings of $6,000 per period by using less costly materials. (Round your intermediate calculations and Turnover answers to 2 decimal places. Round your Margin and ROl percentage answers to 2 decimal placesi.e, 0.1234 should be entered as 12.34).) Effect Margin Turnover ROI