Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000 Gross margin 5251,250 Selling and administrative expense 192,700 Operating Income $58,550 Less: Income taxes (40%) 23,420 Net Income $35,130 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. East Mullett requires a minimum rate of retum of 10% Required: For East Mullett, calculate 1. Average operating assets 2. Residual income