Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last

year the company had net operating income of $$450,000$ on sales of $$1,600,000.$ The company's average operating assets for the

year were $$1,800,000$ and its minimum required rate of return was $16\%.$

Required:

Compute the company's residual income for the year.

Residual income