Kaler Company has sales of $$1,590,000,$ cost of goods sold of $$830,000,$ other operating expenses of $$243,000,$ average invested assets of $$5,300,000,$ and a hurdle rate of $11$ percent.

Required:

Determine Kaler's return on investment $($ROI$),$ investment turnover, profit margin, and residual income.

Several possible changes Kaler could face in the upcoming year follow. Determine each scenarlo's impact on Kaler's ROI and residual income. $($Note: Treat each scenario independently.$)$

o$.$ Company sales and cost of goods sold increase by $5$ percent.

b$.$ Operating expenses increase by $$92,000.$

c$.$ Operating expenses decrease by $10$ percent.

d$.$ Average invested assets decrease by $$475,000.$

e$.$ Kaler changes its hurdle rate to $8$ percent.