The income statement for Huerra Company for last year is provided below: Total Unit Sales $ 4,000,000 $ 80.00 Less: Variable expenses 2,800,000 56.00 Contribution margin Less: Fixed expense, Net operating income Less: Income taxes @30% Net income 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's ROI for the period using the ROI formula stated in terms of margin and turnover. ROI % 2. Consider each of the following questions separately and then compute the new ROI 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 $600,000. (The released funds are used to pay off short-term creditors.) (Do not round intermediate calculations. Enter your percentage answer rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).) ROI % b. The company achieves a savings of $2 per unit by using cheaper materials. (Do not round intermediate calculations.) ROI % 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. (Do not round intermediate calculations.) ROI d. As a result of a more intense effort by the sales staff, sales are increased by 10%; operating assets remain unchanged. (Do not round intermediate calculations and round your final answer to the nearest whole number.) ROI % e. Obsolete items of inventory carried on the records at a cost of $120,000 are scrapped and sold for 10% of the book value. (Use full amount of scrap while calculating average operating assets. Do not round intermediate calculations. Enter your percentage answer rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).) ROI % f. 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. (Use full amount of scrap while calculating average operating assets. Do not round intermediate calculations.) ROI % g. The company pays a cash dividend to its shareholders, which results in a $300,000 change in average operating assets. (Do not round intermediate calculations. Enter your percentage answer rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).) ROI