Coolbrook Company has the following information available for the past year:

The company's hurdle rate is $7\mathrm{.}01$ percent.

Required:

Calculate return on investment $($ROI$)$ and residual income for each division for last year.

Recalculate ROI and residual income for each 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 $$250,000$ in each division, an amount that generates $$109,000$ additional income per division.

d$.$ Coolbrook changes its hurdle rate to $5\mathrm{.}01$ percent.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2$B

Req $2$C

Req $2$D

Calculate return on investment $($ROI$)$ and residual income for each division for last year.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.)$Coolbrook Company has the following information available for the past year:

River Division Stream Division

Sales revenue $ $1,217,000$ $ $1,801,000$

Cost of goods sold and operating expenses $882,0001,290,000$

Net operating income $ $335,000$ $ $511,000$

Average invested assets $ $1,030,000$ $ $1,450,000$

The company$$s hurdle rate is $7\mathrm{.}01$ percent.

Required:

Calculate return on investment $($ROI$)$ and residual income for each division for last year.

Recalculate ROI and residual income for each division for each independent situation that follows:

Operating income increases by $9$ percent.

Operating income decreases by $8$ percent.

The company invests $$250,000$ in each division, an amount that generates $$109,000$ additional income per division.

Coolbrook changes its hurdle rate to $5\mathrm{.}01$ percent.