PA$10-1($Algo$)$ Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each $[$LO $10-4,10-5]$PA$10-1($Algo$)$ Calculating Return on Investment, Residual Income, Determining Effect of Changes in

Sales, Expenses, Invested Assets, Hurdle Rate on Each $[$LO $10-4,10-5]$

Coolbrook Company has the following Information avallable for the past year:

The company's hurdle rate is $6\mathrm{.}76$ percent.

Requlred:

Calculate return on Investment $($ ROI $)$ and residual Income for each division for last year.

Recalculate ROI and residual Income for each division for each independent situation that follows:

a$.$ Operating Income Increases by $9$ percent.

b$.$ Operating Income decreases by $11$ percent.

c$.$ The company Invests $$246,000$ In each division, an amount that generates $$106,000$ additional Income per division.

d$.$ Coolbrook changes its hurdle rate to $4\mathrm{.}76$ percent.

Complete this question by entering your answers in the tabs below.

Req $1$

Recalculate ROI and residual income for each division for the independent situation that follows: Operating income increases

by $9$ percent.

Note: Enter your ROI answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.).$

Loss amounts should be indicated with a minus sign.