Required Information [The following information applies to the questions displayed below.) Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $2,000,000 640,000 1,360,000 860,000 $ 500,000 $1,250,000 At the beginning of this year, the company has a $250,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $400,000 70% of sales $220,000 The company's minimum required rate of return is 10%. 11. What is last year's residual income? Residual income