Coolbrook Company has the following information available for the past year: Sales revenue River Division $1,204,000 Stream Division $1,806,000 Cost of goods sold and operating expenses Net operating income $ Average invested assets 880,000 324,000 $1,190,000 1,286,000 $ 520,000 $1,410,000 The company's hurdle rate is 8.01 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 8 percent. b. Operating income decreases by 10 percent. c. The company invests $253,000 in each division, an amount that generates $111,000 additional income per division. d. Coolbrook changes its hurdle rate to 6.01 percent.