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

	River Division			Stream Division
Sales revenue	$	1,210,000		$	1,814,000
Cost of goods sold and operating expenses		886,000			1,283,000
Net operating income	$	324,000		$	531,000
Average invested assets	$	1,190,000		$	1,560,000

The companys hurdle rate is 6.26 percent.

b. Operating income decreases by 8 percent. River Division Stream Division ROI Residual Income (Loss) c. The company invests $248,000 in each division, an amount that generates $108,000 additional income per division. River Division Stream Division ROI Residual Income (Loss) d. Coolbrook changes its hurdle rate to 4.26 percent. River Division Stream Division % ROI Residual Income (Loss)