The income statement for Huerra Company for last year is provided below Sales Lett Variable expenses Contribution margin Less Fixed expense Net operating income Lasst Income taxes Net Income $ 11,400,000 7,980,000 3,420,000 1,710,000 1,710,000 513.00 $ 1,197, 3225.00 159.60 6.40 14.20 14.20 10.26 $ 23.94 1 The company had average operating assets of $6,000,000 during the year. 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 (.e., 0,1234 should be entered as 12.34).) RO! 28.50 comut the new loure indicate whether the RO will in trase 2. Consider each of the following questions separately and then compute the new rol figure. Indicate whether the ROI will increme decrease, or remain unchanged as a result of the events described a. By using Ji, the company is able to reduce the average level of Inventory by $600,000. (The released funds are med 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 12.343 incare b. The company achieves a savings of St per unit by using cheaper materials (Round Intermediate and final answer to 2 decimal places.) RI Increase c. The company issues bonds and uses the proceeds to purchase machinery and equipment, thus increasing the average assets by $500,000. Interest on the bonds is $50,000 per year. Sales remain unchanged. The new, more efficient equipment reduces tied production costs by $25,000 per year (Round intermediate and final nuwer to 2 decimal places increase d. As a result of a more intense effort by the sales statt sales are increased by 25% operating assets remain unchanged. (Round Intermediate and final answer to 2 decimal places.) ROI 4275 increase e. Obsolete items of inventory carried on the records at a cost of $180,000 are scrapped and sold for 15% of the book value (Useful amount of scrap while calculating average apenting asset. Round Intermediate calculation to 2 decimal com your percentage answer rounded to 2 decimal places (ie, 0.1234 should be entered s 12.34). The company uses $600,000 in cash received on accounts receivable) to repurchase and retire some of its common shares. The net effect of this transaction is a $600,000 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 fie. 0.1234 should be entered as 12.34):) ROL g. The company pays a cash dividend to its shareholders, which results in a $300.000 change in average operating assets. (Round intermediate calculation to 2 decimal places. Enter your percentage onswer rounded to 2 decimal places the 0.1234 should be entered as 12.34)) Rol