For 20X1, the New Products Division, of Testar Company, had operating income of $8,300,000 and operating assets of $45,100,000. The New Products Division has developed a potential new product that would require $8,800,000 in operating assets and would be expected to provide $1,700,000 in operating income each year. Testar has set a required return on investment of 17% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division. Multiple Choice $837,000 $637,000 $797,000