15 ces Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses. Contribution margin : Fixed expenses Net operating income Average operating assets. $ 2,300,000 670,000 1,630,000 1,170,000 $460,000 $ 1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales $460,000 Contribution margin ratio 50 of sales $161,000 Fixed expenses The company's minimum required rate of return is 15%. Foundational 10-13 (Algo) 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Residual income