Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales $ 580,000 Contribution margin ratio 70 % of sales $ 319,000 Fixed expenses The company's minimum required rate of return is 10%. Foundational 10-12 (Algo) 12. What is the residual income of this year's investment opportunity? Residual income $ 50,750 Required information The Foundational 15 (Algo) [LO10-1, LO10-2] [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 $ 1,500,000 730,000 770,000 470,000 $ 300,000 $ 937,500 At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics: Sales $ 580,000 Contribution margin ratio 70% of sales $ 319,000 Fixed expenses The company's minimum required rate of return is 10%. Foundational 10-13 (Algo) 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? Answer is complete but not entirely correct. Residual income $ 569,625