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Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $ 4 9 0 , 0 0 0

Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $490,000 on
sales of $1,200,000. The company's average operating assets were $1,400,000 and its minimum required rate of return was 15%.
Required:
Compute the company's residual income.
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