Exercise 9-8A Return on investment LO 9-2 Rooney Company calculated its return on investment as 10 percent Sales are now $430,000, and the amount of total operating assets is $450,000. Required a. If expenses are reduced by $42,300 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (.e.,.2345 should be entered as 23.45).) b. if both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount.) : % a. Return on investment b. Operating assets must by Exercise 9-12A Comparing return on investment with residual income LO 9-2, 9-3 The Monarch Division of Allgood Corporation has a current ROI of 15 percent. The company target ROI is 11 percent. The Monarch Division has an opportunity to invest $4,900,000 at 13 percent but is reluctant to do so because its ROI will fall to 14.30 percent. The present Investment base for the division is $9,100,000. Required a. Calculate the current residual income and the residual income with the new Investment opportunity being Included. b. Based on your answers to requirement a, should Monarch Division make the investment? a. S 364.000 Current residual income New residual income b. Should Monarch Division make the investment