Solano Company has sales of $580,000, cost of goods sold of $410,000, other operating expenses of $54,000, average invested assets of $1,800,000, and a hurdle rate of 9 percent. Required: 1. Determine Solanos 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, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.) return of investment -

investment turnover

profit margin-

residual income (loss)- 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenarios impact on Solanos 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 30 percent. return on inveestment -

residual income - b. Operating expenses decrease by $13,500. return on inveestment -

residual income - c. Operating expenses increase by 10 percent. return on inveestment - residual income - d. Average invested assets increase by $340,000. return on inveestment - residual income - e. Solano changes its hurdle rate to 15 percent.

return on inveestment - residual income -