The income statement for Huerra Company for last year is provided below: Sales Less: Variable expenses Contribution margin Less: Fixed expense Net operating income Less: Income taxes @ 30% Net income Total $12,600,000 10,080,000 2,520,000 1,260,000 1, 260,000 378,000 $ 882,000 Unit $ 252.00 201.60 50.40 25.20 25.20 7.56 $17.64 The company had average operating assets of $6,000,000 during the year. Required: 1. Compute the company's ROI for the period using the ROI formula stated in terms of margin and turnover (Round Intermediate calculation to 2 decimal places, Enter your percentage answer rounded to 2 decimal places (.e., 0.1234 should be entered as 12.34) ROI % 2. Consider each of the following questions separately and then compute the new Rol figure, indicate whether the ROI will increase, decrease, or remain unchanged as a result of the events described. a. By using JIT, the company is able to reduce the average level of inventory by $300,000. (The released funds are used to pay off short-term creditors.) (Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (.e., 0.1234 should be entered as 12,34).) ROI % b. The company achieves a savings of $13 per unit by using cheaper materials. (Round intermediate and final answer to 2 decimal places.) Saved Help Save & cite c. The company issues bonds and uses the proceeds to purchase machinery and equipment, thus increasing the average assets by $600,000. Interest on the bonds is $60,000 per year. Sales remain unchanged. The new, more efficient equipment reduces fixed production costs by $30,000 per year. (Round intermediate and final answer to 2 decimal places.) ROI % d. As a result of a more intense effort by the sales staff, sales are increased by 20%; operating assets remain unchanged. (Round Intermediate and final answer to 2 decimal places.) ROI %