The income statement for Huerra Company for last year is provided below: Sales Less: Variable expenses Contribution margin Less: Fixed expense Net operating income Less: Income taxes @ 30% Net income Total $44,100,000 26,460,000 17,640,000 8,820,000 8, 820,000 2,646,000 $ 6,174,000 Unit $4, 410.00 2,646.00 1,764.00 882.00 882.00 264.60 $ 617.40 The company had average operating assets of $21,000,000 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 % 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 $400,000. (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 %