Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $440,000 on sales of $1,900,000. The companys average operating assets for the year were $2,100,000 and its minimum required rate of return was 10%.

Required:

Compute the companys residual income for the year.

Average Opperating Assets:

Net Operating Income:

Minimum Required Income:

Residual Income: