zear company produces an eletronic processor and sells it wholesale to manufacturing and retail outlets at $10 each. in zear's year8 fiscal period, it sold 500000 processors. fixed costs for processor for materials. zear employs about 20 hourly paid plant employees, each earning $35000 in year 8. zear is currently con fronting labor negotiations. the plant employees are requesting substantial increases in hourly wages. zear forecasts a 6% increase in fixed costs and no change in either the processor's price or in material costs for the processors. zear also forecasts a 10% growth in sales volume for year 9. to meet the necessary in crease in production due to sales demand, zear recently hired two additional hourly plant employees. the condensed balance sheet for zear at the end of fiscal year 8 follows ( the tax rate is 50%): current assets cash 700000 receivables 1000000 other 800000 total current assets 2500000 fixed assets(net) 5500000 total assets 8000000 current liabilities 2000000 long-term 3.5%debenture 2000000 6% preferred stock, 10000 shares,100 par value 1000000 common stock 1800000 retained earnings 1200000 total liabilities and equity 8000000 required: a. compute zear's return on invested capital for year 8 where invested capital is: 1. net operating assets at end of year 8(assume all assets and current liabilities are operating(. 2. common equity capital at end of year 8. b. calculate the maximum annual wage increase Zear can pay each plant employee and show a 10% return on net operating assets