The income statement for Huerra Company for last year is provided below: Sales Total $12,800,000 10,240,000 Unit $256.00 204.80 Less: Variable expenses Contribution margin Less: Fixed expense 2,560,000 1,280,000 51.20 25.60 Net operating income Less: Income taxes @ 30% 1.280,000 384,000 25.60 7.68 Net income $ 896,000 $17.92 The company had average operating assets of $8.000.000 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, 0.1234 should be entered as 12.34).) ROI 16.00 % 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 $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 decina acestei 0.1234 should be entered as 12.34):) ROI increase b. The company achieves a savings of $13 per unit by using cheaper materials. (Round intermediate an final answer to 2 decimal places.) ROI % increase 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 fixed production costs by S 10.000 per year (Round intermediate and final answer to 2 decimal places) ROI decrease 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 increase e. Obsolete items of inventory carried on the records at a cost of $110.000 are scrapped and sold for 15% of the book value (Use full amount of scrap while calculating average operating assets. 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 Se decrease f. The company uses $500,000 in cash (received on accounts receivable) to repurchase and retire some of its common shares. The net effect of this transaction is a $500,000 change in average operating assets. (Use full amount of scrap 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 as 12.34).) ROL 1% increase g. The company pays a cash dividend to its shareholders, which results in a $400.000 change in average operating assets. 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).) increase ROL