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

		Total		Unit
Sales		$	1,098,000	$	54.90
Variable expenses			658,800		32.94
Contribution margin			439,200		21.96
Fixed expenses			345,000		17.25
Net operating income			94,200		4.71
Income taxes @ 40%			37,680		1.88
Net income		$	56,520	$	2.83

The company had average operating assets of $548,000 during the period.

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 ROI computed in (1) above.

1.	Sales are increased by $243,000; 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).)
	Magin= % effect: Turnover= ROI=

5.

The company issues bonds and uses the proceeds to purchase $164,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $23,000 per period. Sales remain unchanged. The new, more efficient equipment reduces production costs by $7,700 per period. (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).)

6.	The company invests $200,000 of 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 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).)

7.	Obsolete inventory carried on the books at a cost of $21,500 is scrapped and written off as a loss. (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).)