For 20X1, the New Products Division, of Testar Company, had operating income of $9,000,000 and operating assets of $45,800,000. The New Products Division has developed a potential new product that would require $9,500,000 in operating assets and would be expected to provide $2,400,000 in operating income each year. Testar has set a required return on investment of 19% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division. Multiple Choice $893,000 $693,000 $853,000 $1,507,000