Distler Incorporated reported the following results from last year's operations: Sales $ 7,200,000 Variable expenses 5,400,000 Contribution margin 1,800,000 Fixed expenses 1,296,000 Net operating income $ 504,000 Average operating assets $ 4,000,000 At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics: Sales $ 2,480,000 Contribution margin ratio 40 % of sales Fixed expenses $ 868,000 The company's minimum required rate of return is 14%. The residual income for this year's investment opportunity when considered alone is closest to: A. $124,000 B. $12,000 C. $0 D. $108,800