The contribution format income statement for Huerra Company for last

The contribution format income statement for Huerra
Company for last year is given below:
The company had average operating assets of $507,000
during the year.
Required:
1. Compute the company s return on investment (ROI) for
the period using the ROI formula stated in terms of margin
and turnover.
For each of the following questions, indicate whether the
margin and turnover will increase, decrease, or remain
unchanged as a result of the events described, and then
compute the new ROI figure. Consider each question
separately, starting in each case from the data used to
compute the original ROI in (1) above.
2. Using Lean Production, the company is able to reduce the
average level of inventory by $107,000. (The released funds
are used to pay off short-term creditors.)
3. The company achieves a cost savings of $15,000 per year
by using less costly materials.
4. The company issues bonds and uses the proceeds to
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