The Income statement for Huerra Company for last year is provided below: Sales : Variable expenses Contribution margin Less: Fixed expense Net operating income Less: Income taxes @ 30 Net income Total $ 30,000,000 24,000,000 6,000,000 3,000,000 3,000,000 900,000 $ 2,100,000 Unit $ 300.00 240.00 60.00 30.00 30.00 9.00 21.00 The company had average operating assets of $ 12,000,000 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 (i.e,0.1) 0.1234 should be entered 12.34).)

The income statement for Huerta Company for last year is provided below Total Variable expenses Contribution margin response 24,000,000 5.000.000 000NG 3,000,000 900,000 $2,100,000 $300.00 210.00 G.00 10.00 30.00 9,00 The company had average operating assets of $12.000.000 during the yoon Required: 1. Compute the company's Rol for the period using the Rol formula stated in terms of margin and turnover (Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (1.0.0.1234 should be entered as 12.341) 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 the company is able to reduce the average level of inventory by $200,000 (The released funds are used to pay off short-term creditors.) (Round Intermediate calculation to 2 decimal places. Enter your percentage answor rounded to 2 decimal places le 0.1234 should be entered as 12,34).) b. The company achieves a savings of $15 per unit by using cheaper materials (Round intermediate ond final answer to 2 decimal pinces) c. The company issues bonds and uses the proceeds to purchase machinery and equipment, thus increasing the average assets by $200.000. Interest on the bonds is $20,000 per year. Sales remain unchanged. The new, more efficient equipment reduces foed production costs by $10,000 per year. (Round intermediate and final answer to 2 decimal places) ROL d. As a result of a more intense effort by the sales staff, sales are increased by 25% operating assets remain unchanged (Round intermediate and final answer to 2 decimal places) ROL e. Obsolete items of inventory carried on the records at a cost of $80,000 are scrapped and sold for 10% of the book value. (Use full amount of scrop while calculating average operating assets. Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (ie, 0.1234 should be entered os 12:34).) ROI 1. The company uses $200,000 In cash received on accounts receivable) to repurchase and retire some of its common shares. The net effect of this transaction is a $200.000 change in average operating assets. (Usefull amount of scrap while calculating average operating assets. Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places fle. 0.1234 should be entered as 12.34):) ROI 9. The company pays a cash dividend to its shareholders, which results in a $600,000 change in average operating assets. (Round Intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (10.,0,1234 should be entered as 12.34)