Solano Company has sales of $$740,000,$ cost of goods sold of $$490,000,$ other operating expenses of $$46,000,$ average invested assets of $$2,200,000,$ and a hurdle rate of $10$ 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 $30$ percent.

b$.$ Operating expenses decrease by $$10,000.$

c$.$ Operating expenses increase by $10$ percent.

d$.$ Average invested assets increase by $$420,000.$

e$.$ Solano changes its hurdle rate to $16$ percent.

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

Req $2$ A

Req $2E$

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.$)$ Operating expenses increase by $10$ percent.

Note: Loss amounts should be indicated with a minus sign. Enter your ROI percentage answer to $2$ decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.)$

Show less $\frac{?}{{?}_{\frac{?}{?}}}$

$\backslash$table$[[$Return on Investment,$11\mathrm{.}15,\%$