please solve only part E with explanation.

The income statement for Huerra Company for last year is provided below. Sales Less: Variable expenses Total $38,000,000 22,800,000 Unit $380.00 228.00 Contribution margin Less: Fixed expense 15,200,000 7,600,000 152.00 76.00 Net operating income Less: Income taxes @ 30% 7,600,000 2,280,000 76.00 22.80 Net income $ 5,320,000 $ 53.20 The company had average operating assets of $19,000,000 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).) ROHL 4000% 2. Consider each of the following questions separately and then compute the new ROI figure. Indicate whether the Rol 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 fi.e., 0.1234 should be entered as 12.34).) ROI 4 0.80% increase b. The company achieves a savings of $19 per unit by using cheaper materials (Round intermediate and final answer to 2 decimal places.) ROI 50,00 Increase c. The company issues bonds and uses the proceeds to purchase machinery and equipment, thus increasing the average assets by $600,000. Interest on the bonds is $60,000 per year. Sales remain unchanged. The new more efficient equipment reduces fixed production costs by 30.000 per year. (Round intermediate and final answer to 2 decimal places.) ROI 38 96 % decrease operating assets d. As a result of a more intense effort by the sales staff sales are increased by 25% remain unchanged. (Round intermediate and final answer to 2 decimal places.) ROI 6 0.00% increase e. Obsolete items of inventory carried on the records at a cost of $100,000 are scrapped and sold for 10% 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 decrease 1. The company uses $300,000 in cash received on accounts receivable to repurchase and retire some of its common shares. The net effect of this transaction is a $300.000 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 fie. 0.1234 should be entered as 12.34):) ROI 4060% incro