for question c I am getting 29.04 or 28.75 which is wrong for question e I am ge

Question

for question c I am getting 29.04 or 28.75 which is wrong

for question e I am getting 29.72 or 28.06 which is also wrong

The income statement for Huerra Company for last year is provided below: Total Unit Sales Less: Variable expenses $12,000,000 $240.00 6,000,000 120.00 Contribution margin Less: Fixed expense 6,000,000 120.00 3,000,000 60.00 3,000,000 60.00 00,000 18.00 Net operating income Less: Income taxes @ 30% Net income 2,100,000 42.00 The company had average operating assets of $10,000,000 during the year.

Explanation / Answer

Answer of Part C:

Revised Average Operating Assets = Average Operating Assets + Increased Average Operating Assets
Revised Average Operating Assets = $10,000,000 + $400,000
Revised Average Operating Assets = $10,400,000

ROI = Net Income / Revised Average Operating Assets *100
ROI = $2,086,000 / $10,400,000 *100
ROI = 20.06%

Answer of Part e:

Average Operating Assets = $10,000,000 - $180,000
Average Operating Assets = $9,820,000

ROI = Net Income / Average Operating Assets *100
ROI = $2,100,000 / $9,820,000 *100
ROI = 21.38%

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