Coolbrook Company has the following information available for the past year: Sales revenue River Division $1,201,000 Cost of goods sold and operating expenses 889,000 Net operating income Average invested assets $ 312,000 $1,120,000 Stream Division $1,815,000 1,292,000 $ 523,000 $1,530,000 The company's hurdle rate is 7.51 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 11 percent. b. Operating income decreases by 12 percent. c. The company invests $243,000 in each division, an amount that generates $103,000 additional income per division. d. Coolbrook changes its hurdle rate to 5.51 percent.