Exercise $11-2($Algo$)$ Residual Income $[$LO$11-2]$

Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $$480,000$ on

sales of $$1,400,000.$ The company's average operating assets were $$1,600,000$ and its minimum required rate of return was $14\%.$

Required:

Compute the company's residual income.

Residual income