Shrewsbury Inc. reported the following results from last years operations:

Sales	$	7,200,000
Variable expenses		5,400,000
Contribution margin		1,800,000
Fixed expenses		1,296,000
Net operating income	$	504,000
Average operating assets	$	4,000,000

At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:

Sales	$	2,480,000
Contribution margin ratio		40	% of sales
Fixed expenses	$	868,000

The companys minimum required rate of return is 14%.

The residual income for this year's investment opportunity when considered alone is closest to:

$108,800

$0

$112,000

$12,000