10 11 points Foundational 12-11 (LO2 - CC4, 5, 6, 7) Westerville Company reported the following results from last year's operations: eBook Sales Variable expenses Contribution margin Fixed expenses $1,000,000 300,000 700,000 500,000 Net operating income $ 200,000 Average operating assets $ 625,000 References This year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: Sales $ 200,000 Contribution margin ratio Fixed expenses 60% of sales $ 90,000 The company's minimum required rate of return is 15%. Required: What is last year's residual income? Residual income