Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of $51,000, average invested assets of $1,650,000, and a hurdle rate of 8 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (l.e., 0.1234 should be entered as 12.34%). Round your investment Turnover answer to 4 decimal places.) Answer is complete and correct. 5.39% Return on Investment Investment Turnover Profit Margin Residual Income (Loss) 0.3152 17.12% s (43,000 2. 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.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.)) a. Company sales and cost of goods sold increase by 40 percent. Answer is complete and correct. Return on Investment Residual Income (Loss) 8.790% 13.000 b. Operating expenses decrease by $10,500 Answer is complete and correct. Return on Investment Residual Income (Loss) 6.03% $ (32,500 ) c. Operating expenses increase by 20 percent Return on investment Residual income Loss) d. Average invested assets increase by $310,000 Return on Investment Residual Income (Loss) e. Solano changes its hurdle rate to 14 percent. Return on Investment Residual income