Juniper Design Ltd. of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $600,000 on sales of $3,000,000. The companys average operating assets for the year were $2,800,000 and its minimum required rate of return was 18%.

Required:

Compute the companys residual income for the year.

Required: Compute the company's residual income for the year. Residual income