E10-5 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Solano Company has sales of $880,000, cost of goods sold of $560,000, other operating expenses of $45,000, average invested assets of $2,550,000, and a hurdle rate of 12 percent. Required: 1. Determine Solano's return on investment R investment turnover, pro margin and residua come o no round ourin e mediate calculations. Enter our R percentage answer to he nearest 2 decimal places i e 0.1234 should be entered as 12 4%). Round your investment Turnover answer to 4 decimal places. and Profi Margin Return on Investment Investment Tumover Profit Margitn Residual Income (Loss) 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROl and residual income. (Note: Treat each scenario independently.) (Enter your Rol percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.)) a. Company sales and cost of goods sold increase by 40 percent Return on Investment Residual Income (Loss) b. Operating expenses decrease by $14,000. Return on Investment Residual Income (Loss) c. Operating expenses increase by 10 percent. Return on Investment Residual Income (Loss) d. Average invested assets increase by $490,000. Return on Investment Residual Income (Loss) e. Solano changes its hurdle rate to 18 percent. Return on Investment Residual Income (Loss)