Lars Inc. has a $654,000 investment opportunity that would involve sales of $2,003,000, a contribution margin ratio of 31% of sales, and fixed expenses of $427,660. The company's minimum required rate of return is 11%.

1. The residual income for this year's investment opportunity is closest to:

A) ($25,350)

B) ($12,130)

C) $121,330

D) $104,560