esterville Company reported the following results from last year's operations:

Sales $ 1,200,000

Variable expenses 320,000

Contribution margin 880,000

Fixed expenses 640,000

Net operating income $ 240,000

Average operating assets $ 600,000

At the beginning of this year, the company has a $150,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 240,000

Contribution margin ratio 50 % of sales

Fixed expenses $ 84,000

The company's minimum required rate of return is 15%.

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?