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Solano Company has sales of $620,000, cost of goods sold of $430,000, other operating expenses of $51,000, average invested assets of $1,900,000, and a hurdle

Solano Company has sales of $620,000, cost of goods sold of $430,000, other operating expenses of $51,000, average invested assets of $1,900,000, and a hurdle rate of 10 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.) 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. b. Operating expenses decrease by $15,500. c. Operating expenses increase by 10 percent. d. Average invested assets increase by $360,000. e. Solano changes its hurdle rate to 16 percent.

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