Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,206,000 $ 1,813,000 Cost of goods sold and operating expenses 880,000 1,281,000 Net operating income $ 326,000 $ 532,000 Average invested assets $ 1,000,000 $ 1,520,000 The companys hurdle rate is 7.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. 2. Recalculate ROI and residual income for the division for each independent situation that follows: a. Operating income increases by 12 percent. b. Operating income decreases by 10 percent. c. The company invests $260,000 in each division, an amount that generates $120,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent.