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Westerville Company reported the following results from last years operations:

Sales	$ 2,300,000
Variable expenses	670,000
Contribution margin	1,630,000
Fixed expenses	1,170,000
Net operating income	$ 460,000
Average operating assets	$ 1,437,500

At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics:

Sales	$ 460,000
Contribution margin ratio	50	% of sales
Fixed expenses	$ 161,000

The companys minimum required rate of return is 15%.

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?