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 Solanc Corpany has sales of $700,000, cest of gcods sold ef $470000 trperating expenses o S5000c, average invested assels of $2,100,0co, and a hurde rate of 9 percent Required: 1. Determine Solano's retum on investment (RO, investment umover, profnt margin, and resicual income. (Do not round your intermediate ealeulations. Enter your ROl and Profit Margin percentage answer to the nearest 2 decimal places, e., 0.1234 should be entered as 12.34%). Round your Investment Tumover answer to 4 decimal places.) 4 demal Imeestmern Turnuvver Prott Margn Residuel hcome (loa) 2. Several poesible changes that Solano could face in the upccming year fcllow. Detemmine each scenano's impect on Sclano's ROl and res dual income. INote: Treat each scenarlc incependently.) Enter your ROl percentage answers to 2 decimal places, i.e entered as 12.34%.]) 0.1234 shoule be a. Company sales and cost ofgaods sod increase by 30 percent. Rctum cn Invectmcnt Res dual Incame Loss) b. Op erating expenses decrease by 58 000. Has dual cama Los) c. Operating expenses Increase by 10 percent Return on Iweetment Residual Income (Lo88) d.Average invested assets increase by $400,000. Raturn on Inmestmant Residual Income (Loss e. Solano changes its hurdla rane to 15 percent Raturn on Iwcstmment Rasidual Incoma (Las)