Cabal Products is a division of a major corporation. Last year the division had total sales of $26,050,000, net operating income of $1,745,350, and average operating assets of $6,512,500. The company's minimum required rate of return is 10%.

The division's residual income is closest to:

$2,396,600

$(1,302,500)

$1,745,350

$1,094,100