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Stre $1.219. 1.es. Sales revenue Cost of goods sold and operating expenses Het operating income Average invested assets $ 24, $ 1,040,000 20 $1,540,000 The
Stre $1.219. 1.es. Sales revenue Cost of goods sold and operating expenses Het operating income Average invested assets $ 24, $ 1,040,000 20 $1,540,000 The company's hurdle rate is 6.51 percent Required: 1. Calculate return on investment (ROI) and residual income for each division for last year 2. Recalculate ROI and residual income for the division for each independent situation that follows a. Operating income increases by 9 percent b. Operating income decreases by 9 percent c. The company invests $244.000 in each division, an amount that generates $120.000 additional income per division d. Coolbrook changes its hurdle rate to 451 percent
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