Coolbrook Company has the following information available for the past year:

	River Division		Stream Division
Sales revenue	$	1,205,000	$	1,817,000
Cost of goods sold and operating expenses		890,000		1,285,000
Net operating income	$	315,000	$	532,000
Average invested assets	$	1,060,000	$	1,460,000

The companys hurdle rate is 6.76 percent.

Required:
1.	Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

2.	Recalculate ROI and residual income for each division for each independent situation that follows:

a.	Operating income increases by 9 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

b.	Operating income decreases by 11 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

c.	The company invests $244,000 in each division, an amount that generates $113,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

d.	Coolbrook changes its hurdle rate to 4.76 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)