Solano Company has sales of $$560,000,$ cost of goods sold of $$400,000,$ other operating expenses of $$53,000,$ average invested

assets of $$1,750,000,$ and a hurdle rate of $8$ percent.

Required:

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

Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI

and residual income. $($Note: Treat each scenario independently.$)$

a$.$ Company sales and cost of goods sold increase by $40$ percent.

b$.$ Operating expenses decrease by $$12,500.$

c$.$ Operating expenses increase by $20$ percent.

d$.$ Average invested assets increase by $$330,000.$

e$.$ Solano changes its hurdle rate to $14$ percent.

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

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

Note: Loss amounts should be indicated with a minus sign. Do not round your intermediate calculations. Enter your ROI and

Profit Margin percentage answer to the nearest $2$ decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%).$ Round your

Investment Turnover answer to $4$ decimal places.