Coolbrook Company has the following information available for the past year: Sales revenue River Division $1,208,000 Stream Division $1,815,000 Cost of goods sold and operating expenses. 893,000 1,298,000 Net operating income Average invested assets. $ 315,000 $ 517,000 $1,010,000 $1,460,000 S The company's 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 9 percent. b. Operating income decreases by 8 percent. c. The company invests $241,000 in each division, an amount that generates $117,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.26 percent.