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21 Problem 11-20 Return on Investment (ROI) Analysis LO11-1] 10 The contribution format income statement for Huerra Company for last year is given below: points Total Unit Sales Variable expenses Contribution margin Fixed expenses Net Income taxes @ 48% Net income $ 1,084,808 58.28 38.12 28.88 15.88 4.28 1.68 $50,488 2.52 682,48e 481,688 317,688 84.808 33,608 eBook operating income Print The company had average operating assets of $498.000 during the year. References Requlrec (ROI Nor the perioousing Ormula stated in tems of margin turnover indicate wh For each of uefollowing of the events desc used to compute 2. Using Le pay offHort-term creditors. will increas question sepa e decrease, or unchan s a result d thenc new ROl figur g in eac e from he data e. oduction, the edace the age leverof invemor 000. (The ased funds are used t e compa 4. The company issues bonds and uses the proceeds to purchase machinery and equipment that increases average operating assets by $125,000. Interest on the bonds is $11,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $5,000 per year. Sales are increased by 20%; operating assets remain unchanged. 6. At the beginning of the year, obsolete inventory carried on the books at a cost of $17,000 is scrapped and written off as a loss. 7. At the beginning of the year, the company uses $184,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. Complete this question by entering your answers in the tabs below Req d 3 Required 4 Required 5 Required Required 7 Sales are increased by 20%; operating assets remain unchanged. (Round your answers to 2 decimal places.) Margin Turnover

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