Solano Company has sales of $760,000, cost of goods sold of $500,000, other operating expenses of $40,000, average invested assets of $2,250,000, and a hurdle rate of 11 percent.

c. Operating expenses increase by 20 percent. Return on Investment Residual Income (Loss) d. Average invested assets increase by $430,000. Return on Investment Residual Income (Loss) e. Solano changes its hurdle rate to 17 percent. Return on Investment Residual Income (Loss)