Coolbrook Company has the following information available for the past year: Sales revenue River Division $1,213,000 Stream Division $1,804,000 Cost of goods sold and operating expenses Net operating income $ Average invested assets 889,000 324,000 $1,090,000 1,292,000 $ 512,000 $1,600,000 The company's hurdle rate is 6.51 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 9 percent. b. Operating income decreases by 10 percent. c. The company invests $249,000 in each division, an amount that generates $112,000 additional income per division. d. Coolbrook changes its hurdle rate to 4.51 percent.