5 & The New Products Division of Testar Company, had operating income of $8,300,000 and operating assets of $45.100,000 during the current year. The New Products Division has developed a potential new product that would require $8,800,000 in operating assets and would be expected to provide $1700,000 in operating Income each year. Testar has set a target return on investment (RO) of 17% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division 1oooo O $53,000 $27000