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

	River Division		Stream Division
Sales revenue	$	1,204,000	$	1,815,000
Cost of goods sold and operating expenses		892,000		1,287,000
Net operating income	$	312,000	$	528,000
Average invested assets	$	1,040,000	$	1,450,000

The companys hurdle rate is 7.01 percent.

Required:
1.	Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

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

a.	Operating income increases by 8 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

b.	Operating income decreases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

c.	The company invests $245,000 in each division, an amount that generates $100,000 additional income per division. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)

d.	Coolbrook changes its hurdle rate to 5.01 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.)