The income statement for Huerra Company for last year is provided below Total Unit $33,300,000 $666.00 26,640,000 532.80 Less: Variable expenses Contribution margin Less: Fixed expense 6,660,000 3,330,000 133.20 66.60 Net operating income Less: Income taxes @ 30% 3,330,000 999,000 66.60 19.98 Net income $2,331,000 46.62 The company had average operating assets of $9,000,000 during the year. Required: 1. Compute the company's ROl 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 (i.e., 0.1234 should be entered as 12.34).) ROI 37.001% 2. Consider each of the following questions separately and then compute the new ROl figure. Indicate whether the ROl 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 $600,000. (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 (i.e., 0.1234 should be entered as 12.34)) ROI 39.601% (increase b. The company achieves a savings of $33 per unit by using cheaper materials. (Round intermediate and final answer to 2 decimal places.) ROI 55.321% rinc rease