https76253A9625219%252Fnewconnect.mheducation.com Chapter 12 i Saved The income statement for Huerra Company for last year is provided below: Total Unit Sales $ 30, 900, 000 $ 300.06 Less: Variable expenses 24, 900, 060 240.00 Contribution margin 6,000, 900 60.00 Less: Fixed expense 3,000, 000 30.00 Net operating income 3, 090, 000 30.00 Less: Income taxes @ 30% 900, 090 9.00 Net income $ 2, 100,000 $ 21.00 The company had average operating assets of $12,000,000 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 $200.000 (The released funds arefused to pay off Brey 5of 5Saved 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 $10,000 per year. (Round intermediate and final answer to 2 decimal places.) ROI % d. As a result of a more intense effort by the sales staff, sales are increased by 256, operating assets remain unchanged, (Round intermediate and final answer to 2 decimal places.) RO NImermed ass calcul aden bo 2 decimal places. free your percentage answer rounded to 2 decimspoon Fe. Q131is all H