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

	River Division			Stream Division
Sales revenue	$	1,207,000		$	1,813,000
Cost of goods sold and operating expenses		888,000			1,287,000
Net operating income	$	319,000		$	526,000
Average invested assets	$	1,060,000		$	1,480,000

The companys hurdle rate is 7.76 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 12 percent.

b. Operating income decreases by 9 percent.

c. The company invests $241,000 in each division, an amount that generates $106,000 additional income per division.

d. Coolbrook changes its hurdle rate to 5.76 percent.

I don't understand C& D

C) & D) What is the ROI percent and Residual income(Loss) for River Division and Stream Division given the information above?